"Going by the statements of CEO, Goods and Services Tax Network (GSTN), the GSTN will not be fully operational on the 1st of July, 2017".
Companies would be able to file simplified, aggregate returns in July and August, with a deadline of the 20th of the following month, said Hasmukh Adhia, a finance ministry official steering the launch of the tax. "From September, strict adherence to time will go on", said Finance Minister Arun Jaitley on Sunday.
It also decided that hotel rooms costing more than Rs 7,500 a night will be taxed at 28 per cent under GST; rooms with tariffs in the range of Rs 2,500-Rs 7,500 a night will be taxed at 18 per cent. This would mean that an 18 per cent GST will be levied on bills of Rs2,500-7,500.
The GST Council has approved anti-profiteering rules to form the mechanism. The "state of readiness of IT network was discussed at length", Jaitley said, adding that 81.1% of existing taxpayers have enrolled on GSTN. The Council claimed the relaxation was given to avoid any grievances or lack of preparedness.
The GST Council will meet again on June 30, the eve of the launch, Jaitley said.
Isaac said that the GST is expected to lessen the tax burden by Rs 1 lakh crore and the government was taking all steps to ensure that corporates did not profit from this relief. The central government has 24.5% equity in the GSTN, whereas state governments, two Union territories and empowered committee of state finance ministers together hold another 24.5% stake in it. Taxes paid at each stage will be available in the next stage of value addition, thus with the implementation of the GST, a tax will only be paid at value addition at each stage. "GST is not just a tax, it is an initiative to unite the Indian market", the actor is seen speaking in the video.
GST is the biggest tax reform in India's 70-year history, and will require firms to file three online returns each month. Isaac has also said that agents who sold lotteries from other states will not be allowed to sell Kerala government's lotteries.
"I must candidly state that there was no consensus on the e-way bill".