India attempts GST settlement
- Dec 9, 2016 | Richard Asquith
Today’s meeting of the GST Council will seek to close the two outstanding blockers to the roll out of GST in April 2017.
The Council is made-up of representatives from the Centre and 16 states. The two key issues are:
- Agreement on the 3 implementation laws: Goods and Services Tax; Integrated GST; and Compensation for States
- Agreement on the ‘assessee jurisdiction’, which governs which state levies and collects the new tax
GST will replace a complex, multi-tax regime that holds back the development of intra-state trade and growth of a manufacturing sector. It is estimated that it could add 2% to annual growth rates.