State all set to implement Goods and Service Tax
Guwahati/ 27th June’2017 (Prag News Desk): Assam is gearing up to implement the Goods and Services Tax (GST) regime. The State Government have notified the GST rules and majority of the dealers have already registered themselves under the new regime.
The Government of India will be compensating the new regime and it is likely that the State Government will not suffer from any financial loss with the onset of GST.
It is to be mentioned that the under the GST regime, apart from VAT on few items, the GST reform will stay constant all over the country.
Incidentally, GST excludes petroleum products and alcohol, the States will have the power to impose VAT on it. However, if the States need to increase tax on any other item, they have to approach the GST Council for approval.
The State Government has listed the registered dealers under GST. Here, the process of training up the drawing and disbursing officers of all the departments is going on and the process is likely to be completed by the end of this month for smooth transition to the GST regime from July 1.
The Centre will be compensating the states, which will suffer initial loss due to introduction of the GST.
As per the formula, the Centre has taken 2015-16 as the base year and would compensate the states, which do not attain 14 per cent annual tax collection growth. If Assam attains 14 per cent growth after the introduction of the GST, it would not get any additional fund, but if the growth rate is less than 14 per cent, the balance amount will be paid by the Centre.