GST Bill in Rajya Sabha - What is Integrated Goods and services Tax?
TIOL-DDT 2902
03 08 2016
Wednesday
THE Rajya Sabha is scheduled to discuss and maybe even pass the GST Bill today. But it is not going to be the same Bill as passed by the Lok Sabha. Not only political compulsions, but drafting defects have also forced certain changes.
The Constitution Amendment Bill as passed by the Lok Sabha in clause 12 provides for the Goods and Services Tax Council to make recommendations on model Goods and Services Tax Laws, principles of levy, apportionment of Integrated Goods and Services Tax and the principles that govern the place of supply.
Now, what is Integrated Goods and Services Tax? This is not defined in the constitution, though it is covered under the proposed Integrated Goods and Services Tax Act, 2016.
The law makers seem to have realized this well in time and one of the amendments proposed in the Bill in the Rajya Sabha today is that the words, "Integrated Goods and Services Tax" are to be substituted with "Goods and Service Tax levied on supplies in the course of inter-State trade or commerce under Article 269A". Well, that is what Integrated Goods and Services Tax is all about.
Clause 18 of the Lok Sabha passed Bill stipulates, an additional tax on supply of goods, not exceeding one per cent, in the course of inter-State trade or commerce shall, notwithstanding anything contained in clause (1) of article 269A, be levied and collected by the Government of India for a period of two years or such other period as the Goods and Services Tax Council may recommend.
This 1% additional tax is proposed to be deleted.
Compensation to the States is to be more emphatically stated.
Dispute resolution is more pronounced and so is the distribution of taxes between the Centre and the States.
Keep your fingers crossed; we may be in for the most important fiscal change in the history of India. For a change, TAXATION is going to be a hotly debated issue. The Bill may be presented in the Rajya Sabha at 2 pm and the discussions and voting may go well past 10 pm. It is reported that elaborate arrangements are being made for a smooth sail of the Bill and a nice dinner later.
Submit a Brief Note at time of Hearing - CESTAT President
A delegation of Executive Members of the Bar Association met the President of the CESTAT and apprised him of the difficulties faced by the Bar Members. The President assured that he would look into the problems.
The President desired that in order to expedite the disposal of cases, the parties can submit a brief note in 3 to 4 pages at the time of hearing.
The Bar Association advises its members accordingly.
PM Urged to Fill Vacancies in CESTAT - Bar Against Extension of Service to CESTAT Member
THE Bar Association has submitted a representation to the Prime Minister of India against granting extension to a Technical Member of CESTAT who is to retire shortly.
Bar Association feels that such extension to individual Member on selective basis would erode the independence of the Tribunal and shake public confidence in the impartiality of the CESTAT. The Association strongly opposes grant of extension/re-appointment of the Member as it is contrary to statutory provisions and against public interest.
The Association notes that in the history of CESTAT, not a single extension has ever been given to any Member and the present proposal clearly shows favouritism.
While DDT takes no stand on this issue, it is heartening to know that there are people who are willing to do this excruciatingly difficult job with hardly any facilities.
In 2007, before Justice Abichandani retired as President of CESTAT, there was a strong rumour that he was getting an extension. I met him a couple of months before his retirement and told him that the rumour was he was trying for an extension. He called his wife and said, "Lakshmi, am I getting an extension in CESTAT?".
She told me, "he had had enough here, let him leave this and practice in the Supreme Court". (which he later did).
CBDT Dismisses Truant Commissioner
MR. SV Jadhav, Commissioner of Income Tax, Hyderabad took several spells of leave from 3.11.2009 to 16.7.2010 after which he neither joined duty nor applied for leave. The CCIT recommended that he be treated as absconding and on unauthorized leave. A Show Cause Notice was issued to Jadhav on 13.5.2011 as to why disciplinary action cannot be initiated against him. After several letters and inquiries, for the last five years during which period, he did not join duty, Board has decided to dismiss him from service.
By an order issued yesterday, the Board (President) dismissed him from service, which shall ordinarily be a disqualification for future employment under the Government.
CBDT Order in F.No.A-24012/06/2001-Ad.VI(A)., Dated: August 02 2016
It is no doubt fair and in the national interest to check tax evasion with a firm hand; but it is neither fair nor in the national interest that the law should be made to bear hard on a large number of honest taxpayers merely in order to get at a few dishonest ones. It is not right that so much should be inflicted on so many in order to rope in a few.
What is wrong with India is the pathological obsession displayed by the lawmakers who frame laws only with the tax evader in mind, regardless of the enormous inconvenience and harassment to the far larger section of honest taxpayers. A departmental store which is wholly preoccupied with prevention of shoplifting is a sure candidate for stagnation.
Nani Palkhiwala
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Until Tomorrow with more DDT
Have a nice day.
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