No consensus at GST Council, next meet on December 11-12

NEW DELHI: The Goods and Services Tax Council failed to break the logjam on the crucial issue of division of tax administration between Central and state authorities, but made some progress on the central legislation for the proposed regime. While lack of consensus — third time in a month — could cloud the implementation from April 1 next year, the Centre remains optimistic about its rollout.

“Are we close to a resolution? I’ll keep my fingers crossed,” said Finance Minister Arun Jaitley, who is also the chairman of the council, on the outcome of the talks at the twoday meeting that ended on Saturday.

“I hope during the next meeting on December 11-12, there is a positive movement as far as laws are concerned. On the critical issue of cross empowerment, twothree suggestions have come,” he added.

The council will attempt to hammer out the differences on which assessees will be controlled by states and who would be governed by the Centre, as also approving the draft supporting legislation CGST and SGST.

Besides, the council will also have to approve a law detailing compensation to states for loss of revenue in the first five years of the rollout and Integrated GST (IGST). Jaitley, however, added the new regime will have to be put in place latest by September 16, 2017, as it is a constitutional requirement. Giving further details, he said during the two days the council discussed draft CGST and IGST laws.

Expert said an in-depth discussions about the administration were crucial for a good GST framework. “It is better that all issues relating to GST are discussed threadbare before the GST legislation is finalised so that business has clarity on the GST framework from the beginning,” said MS Mani, senior director, Deloitte Haskins & Sells LLP.