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Highlights of Press Conference, lead by the Union Finance Minister and Revenue Secretary,

held on August 4, 2016 outlining Goods and Services Tax (GST) implementation program

Doing business in India would be easier with GST. In long run it would help citizens, as the rate of

tax would have to come down and prices would reduce of many goods. The target date of

implementation of GST is April 1, 2017.

Legal framework

States are expected to ratify the Bill in their current monsoon sessions or they may call for special

sessions. It is expected that the States would ratify the Bill in next 30 days. Ratification is required

by atleast 50 percent of the 29 States and two Union territories with legislature. Notice has been

moved in Lok Sabha for ratifying the Bill, as amended, passed by the Rajya Sabha.

GST Council would be required to approve the Model Laws. Government of India intends to place

the GST Laws before the Parliament in the next Winter Session. It also expects the States to place

the State GST Law before the respect State Assemblies in their next Winter Session.

GST Network

Front-end modules for registration, payment and return are ready. Procurement process of hardware

is in progress. 17 States would rely on GSTN front end modules. 14 States would have their own

front end modules. GSTN is in the process of developing back-end modules. All the front-end and

back-end modules would be ready by December 2016. Testing would be done from January – March

2017.

For registration, State-VAT database is ready, duly cleaned, central excise database and service tax

database are ready for auto-migration to GSTN. New registration would be given within three days, if

there are no queries. Post-registration verification may be done.

Returns for intra-State B2C transaction would not require transaction wise details. For B2B and inter-

State transaction, there would (i) supplier side transaction upload by 10th of the following month, (ii)

purchase side transaction auto-populated and matched by 15th of the following month, (iii) Auto

monthly return to be auto-populated and (iv) annual return to be auto-populated. For small businesses

instead of monthly return there would be quarterly return. There would be only one return for both,

Union and State.

Change management

This would involve (i) training of the 30,000 Central Government and 30,000 State Government

revenue officers and (ii) out-reach program for business community. First phase of training is over.

1,000 officers would be trained as ‘trainers’, who in turn would provide training to the all the other

officers. GSTN would also impart training to these officers.

Challenges for implementation by the target date

Calculation of revenue base and GST rate structure

Requirement of compensation due to loss of revenue arising on account of implementation of GST

List of exemptions

Model GST Laws

Threshold limit

Composition limit

Dual control

Sthir Advisors LLP, a limited liability partnership (Registration No. AAE-5755), is a professional services

firm which specializes in the area of Indian indirect taxes and foreign trade policy.