Though the GST Bill has been cleared but when it will be implemented seems to be a difficult question. Harsh Mariwala, Chairman & Managing Director, Marico on Monday told ET Now, it is very difficult to say that government will meet April 1 deadline for GST implementation. He further said, “it is important that industry passes on the benefit if GST rate is lower. “Merit rate should be lower than 12%; standard rate should be reasonable,” he added.
The Cabinet today approved the proposal to form a GST Council. Last week, sources told ET Now that the Cabinet will consider administrative framework to back the Council and its first meet may take place in the final week of September. Revenue Secreatry Hasmukh Adhia told the channel that “exemption list for items under GST is yet to be finalised and Cabinet may also take up proposal to set up a GST Secretariat.”
GST Council will be headed by by Union finance minister Arun Jaitley and will have state finance ministers. The council will decide on the tax rate, the threshold turnovers for businesses to come under the tax net, the exemptions list etc. Jaitley has recently said that the government will attempt to press ahead with the implementation of the GST from April 1, 2017, though he thought it was a stiff target. The Bill was sent to the President’s secretariat after as many as 18 states ratified the Bill. The states that ratified the Bill include Assam, Bihar, Jharkhand, Chhattisgarh, Himachal Pradesh, Gujarat, Madhya Pradesh, Delhi, Nagaland, Maharashtra, Haryana, Sikkim, Mizoram, Telangana, Goa, Odisha and Rajasthan. The Union territory of Puducherry also ratified the Bill