The CBEC has asked the industry to prepare itself to implement GST from April 1, 2017 and said that there will be GST readiness on part of the government.
Opening a conference on GST organised by Assocham in New Delhi, Najib Shah, Chairman, CBEC said, “We don’t want to reduce ‘dual’ (GST structure) into duel.” He was referring to dual structure that was Centre and State GST.
Lack of consensus on the issue of how the new tax, having central and state elements, would be collected and administered is holding up the supporting legislations on the GST which the government is keen on introducing from April 1 next year.
Shah said the CBEC would also look into anti-profiteering mechanism. "We are very clear that one assessee will be dealing with the administration of either state or the Centre. So the entire cross empowerment issue was, we empower each other to say that in case the state authorities look at SGST issue, they also look at CGST and vice versa," he added.
“The administration of state or centre will be dealing with one assesses only. So, the entire cross empowerment went was to ensure the suitability empower with each other. The both the administration centre and the state are committed too. I’m sure that an issue will be resolved,” said Shah.
Chairman CBEC also said that the multiplicity of GST rates is the necessity due to the economic and political compulsion. The Government unsure about exact compensation figures for states, may vary between Rs. 10,000 to 20,000 crore, said Shah.
The central government and state governments have to collect Rs 8 lakh plus crore of revenue which they are currently getting from indirect taxes other than customs. In the course of the GST council deliberations, growth rate of 14 percent for 5 years for each one of the states has been assumed. It’s a huge assumption and the burden which central government has cast upon itself.
Chairman of CBEC said, "I’m sick and tired of hearing from wise people that we should have one rate of GST”. He further said, how can we have a one rate for edible, cars, atta, computers? We cannot have one rate but we can reach one rate 20 years down the line. So, we have to have multiple rates, he added.
According to the CBEC, there are a wide range of commodities which is not taxed by the state administration, taxed by central excise and service tax regime and vice –versa.