GST introduction target may be missed due to hurdle created by WB
New Delhi: Demonetisation has cast its shadow on Goods and Services Tax (GST), addition to some other areas. It may not be rolled out on the first of April next as planned, although the government has not yet lost the hope completely.
Some of the opposition-ruled states particularly West Bengal which have gone totally against Prime Minister Narendra Modi in the wake of note-ban decision have toughened their stand on the GST as it was his second pet project.
In view of all this, there was no agreement between the Centre and the states on the some of the issues ,at the meeting of the Council , set up for sorting them on Sunday.The two-day meeting of the body held earlier this month had also remained inconclusive.
The Council has to finalise drafts of three legislations which after approval have to be discussed and passed by the two houses of Parliament before implementation. They were to be moved during the current session of which is scheduled to end this week. Since there has been no agreement on these legislations and they will be discussed again at the next meeting slated to be held on December 22 and 23, they can be taken up only at the next session which will be held next month.
The three legislations are: Central GST, Integrated GST and Compensation law. The other area which is eluding agreement is administrative control--- who will decide the assessees and will take the final call, the Centre or the state.
The parliament has to pass these legislations. In addition, each state assembly is required to adopt the state GST law. Passage of the bill by a few states will not do. Fifty per cent of states in the country ( total 29) have to give their assents. All this may delay the implementation .
West Bengal has been lately joined by Kerala, which is less vocal, in demanding higher compensation. Both are of the opinion that demonetisation will adversely affect the Gross Domestic Product or GDP. Clearly, the government at the Centre has to cross many hurdles which have come up in the way.