GST roll-out to be postponed? Ignore rumours and get ready for July 1

Revenue secretary Hasmukh Adhia cleared the air over rumours of delaying GST rollout and urged people not to be mislead by it.

However, Finance Minister Arun Jaitley said that the Goods and Services Tax (GST) is a simplified indirect tax regime and there is no reason to further postpone its targeted July 1 roll-out date.

“With all the procedural matters decided, registrations are taking place at a fast pace. Today I see no reason why we can’t target July 1,” Jaitley told news channel.

West Bengal Finance Minister Amit Mitra has raised serious doubts over the feasibility of GST roll-out from July 1, saying that the Goods and Services Tax Network (GSTN) was not ready to handle the large volumes of forms that would be received.

However, Jaitley said that other states’ finance ministers did not share Mitra’s view. Negating any adverse impact of the GST on growth, Jaitley said there could be initial teething troubles but it would actually lead to expansion of assessee base and taxpayer base.

“There may be teething troubles initially…I don’t think there would be any adverse impact on growth. Disruption will be there because we are switching to a new system. But I foresee assessee base and taxpayer base expanding,” he said.

Union Finance Minister Arun Jaitley reiterated that the traders and industry had no option but to get ready by July 1 as no postponement was on the anvil.

“Irrespective of the date at which is to start, some people will say we are not ready. They have no option but to get ready. You require honest intent for that,” he told reporters when asked about some industry representatives seeking more time for the roll-out.

Supporting a July 1 roll-out, Maharashtra Finance Minister Sudhir Mungantiwar cautioned against any further delay of GST and said that this may raise doubts in the industry.

“Whatever is remaining will be completed. But if we postpone beyond July 1, it will create doubts. As it is we can’t implement GST after September. We should bring GST into implementation from July 1 and if there crops any issue GST Council can resolve it promptly,” he said.

Claiming readiness by July 1, Jharkhand too has said that all its GST officers and chambers of commerce have been imparted training and the state is fully ready to roll-out the novel tax reform from the designated date.

[Copyright By IST]