India discusses new GST law
- Oct 19, 2015 | Richard Asquith
Whilst doubts remain about the implementation date of the new Indian Goods & Services Tax (GST), the state finance ministers have begun to review a draft new law covering compliance and returns.
Delayed GST implementation
Indian GST will replace the antiquated VAT and Service Tax which had proved restrictive to developing an internal manufacturing sector. As the implementing legislation, the Constitution Amendment Bill, is presently on hold due to a dispute between the government and opposition. The means the targeted implementation date of April 2016 will be unlikely.
The draft law has been prepared by the Centre (Delhi central government) and 29 states. There will be discussions shortly between the states’ finance ministers. There will then be a public consultation at the start of November. The states will have to compile local implementing legislation after this point.