Tuesday 24 January 2017

Revenue body asks FM not to implement GST in hurry; threatens legal action

Arun, Jaitley, Arun Jaitley

GST - Claiming that demonetisation has affected country's growth, a major central revenue body has asked Finance Minister Arun Jaitley not to implement Goods and Services Tax (GST) in a hurry and threatened to take legal recourse in case their concerns are not addressed.

It termed as "illegal" certain decisions taken by Jaitley-headed GST Council and demanded a correction. It also sought that the officer's body be consulted before any final decision is taken.

The council in its meeting on January 16, had agreed to give states the powers to levy tax on economic activity within 12 nautical miles of territorial waters.

Also, it was decided that the states will have powers to assess and administer 90 per cent of the tax payers under Rs 1.5 crore annual turnover, while the remaining would be controlled by the Centre.

In a letter to Jaitley, the All India Association of Group B Central Excise Gazetted Executive Officers said the decision to transfer 90 per cent of service tax assessees to states is not supported by any lawful and logical base and therefore, the decisions taken by GST Council should be withdrawn immediately.

"Needless to say, any judicial intervention in the illegal decisions taken by GST Council, and if implemented by the Centre, would cause unnecessary delay in the implementation of GST.

"It is further added that due to demonetisation of old bank notes of Rs 500 and Rs 1,000, the GDP of the country is expected to fall at least 1 per cent (from 7.6 estimated to 6.6 per cent, as reviewed), and in case implementation of GST is delayed further, due to judicial scrutiny of the illegal decisions taken by GST Council, the country may suffer economically as the GDP may further slow down," it said.(Read More)

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