Stating that demonetisation has stabilised in urban areas, CII President Naushad Forbes on Wednesday said that the government needs to remonetise rural areas with more Rs 500 notes. In an interview with ET Now he said, “Economy returning to normalcy post demonetisation. New currency of Rs 500 denomination should reach more to rural areas.” Talking about GST he told the business channel that government must finalise GST roll out dates at the earliest. “I don’t see a big difference if GST is implemented in April or September.”
Meanwhile, States and Centre have been unable to reach any consensus on the issue of dual control in administrative control of Goods and Service tax, Finance Ministry said after a GST Council held a meeting last week. Dual control has been one of the key issues preventing Central Government from meeting the April 1st deadline. The next meeting of the council will be held on January 16.
In council’s last meeting, Union Finance Minister Arun Jaitley had said that GST’s primary drafts for Central Goods and Service Tax (CGST) and State Goods and Service Tax (SGST) have been approved. However, no consensus was reached on the issues of dual control and cross empowerment issues still remain to be resolved. There is an issue with Integrated GST (IGST) Bill and dual control regarding division of jurisdiction and administrative powers over tax assesses between the Centre and the states.
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Notably, three Bills relating to GST, namely, the CGST Bill, the IGST Bill and the Bill for compensating states for revenue losses following the implementation of GST have missed the initial deadline of passage in the Winter Session of Parliament.