Updated on: Jul 13th, 2021
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1 min read
GST council today met for the ninth time to settle down the contentious issue of dual control, but the deadlock still remains. It was highly anticipated that conclusion would be drawn this time, however finance minister failed to bring consensus among the states over the issue of revenue sharing and dual control.
Delay on agreement between states might force center to go for voting which has been avoided so far and approach of unanimous decision between states has been maintained. Major implication of today’s meeting are:
Given the situation that GST is not implemented from April 1, it needs to be implemented anyhow before September 16, 2017. This is because of the amendment in the Constitution of India which empower both Central and State government to collect current indirect taxes only till 1 year from the passage of constitution amendment bill, this date falls on September 16, 2017.
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The GST council met for the ninth time but failed to reach a consensus on the issue of dual control, delaying the roll-out of GST to beyond April 1, 2017. Businesses get more time for transition, while the IT infrastructure for GST implementation now has more time for testing. Central government may have to resort to voting which could upset certain states. Implementation needs to happen before September 16, 2017 due to constitutional constraints.