Union Ministry of Finance on 17 June 2015 formed two committees for facilitating implementation of Goods and Services Tax (GST) from 1 April 2016.
These committees are intended to speed up the process of establishing necessary administrative infrastructure to implement the GST.
Terms of Reference of Committee on GST rate:
• It will recommend possible tax rates under GST that would be consistent with the present level of revenue collection of the Union and States.
• It will be headed by the Chief Economic Advisor (CEA), Ministry of Finance. The present CEA is Arvind Subramanian.
• While making recommendations, it would take into account expected levels of growth of economy, different levels of compliance and broadening of tax base under GST.
• It would also analyse the Sector-wise and State-wise impact of GST on the economy.
• It is expected to give its report within two months.
Terms of Reference of Steering Committee on GST
• It will monitor the progress of IT preparedness of Goods and Services Tax Network (GSTN)/ the Central Board of Excise and Customs (CBEC)/Tax authorities.
• It will monitor the finalisation of reports of all the Sub-Committees constituted on different aspects relating to the mechanics of GST and drafting of Central GST, Interstate GST and State GST laws/rules.
• It will monitor the progress on consultations with various stakeholders like trade and industry and training of officers.
• It will be Co-Chaired by Additional Secretary, Department of Revenue and Member Secretary, Empowered Committee of State Finance Ministers.
• It has members from Department of Revenue, Central Board of Excise & Customs, Goods and Services Tax Network (GSTN) and representatives of State Governments.
About Goods and Services Tax (GST)
GST will subsume present indirect taxes like excise, services tax, sales tax, octroi, etc. and is touted as the biggest tax reform since the Constitution of India came into force.
The Constitution (122nd Amendment) (GST) Bill, 2014 was approved by the Lok Sabha and is pending with the Rajya Sabha.
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When: 17 June 2015