GST: a positive step, but the deadlock continues

The all crucial GST council meet failed to build consensus on Friday on “dual control” to divide the administrative, auditing and assessing powers between the centre and state.

It is deemed to be a minor set back in what can be termed as a crucial victory and development on the front of the proposed nation-wide goods and service tax (GST).

The idea now is to build a political consensus on several contentious issues. An informal meeting is scheduled on November 20, followed by GST council meet on November 24 and 25, 2016.

On the historic bill, Jimeet Modi, CEO of SAMCO securities says, “ Although the imposition of Cess is a bit of a disappointment, hopefully the same will be removed after a year of implementation. The structure of the rates are progressive in nature and therefore will increase the purchasing power of the lower income class as many of the necessities are exempt”.

“I congratulate Arun Jaitley and the GST Council in finalising the 4- tier tax structure for implementing the path- breaking reform. We hope sufficient time is given to companies to comply with the tax after the rules are finalised and made public and that the levy of cess would not lead to inflationary pressures.” said G.P. Hinduja, global co-chairman, Hinduja Group of Companies.