[It is rather noteworthy that even after the Bill is passed by the Lok Sabha, the "draft" is being worked on before being placed before the Rajya Sabha. So, even if the Rajya Sabha passes the Bill, whenever and in whatever form, it is to again go back to the Lok Sabha. So, it is set to be a rather long and arduous journey, despite misleading leaks and pronouncements.]
I/III. http://www.firstpost.com/business/leaked-draft-reveals-regressive-gst-it-may-deal-a-body-blow-to-economy-2533764.html GST Act draft leaked; the 'reform' can deal a body blow to economy by Shalini Singh Dec 5, 2015 08:31 IST New Delhi: Adding to the overall flutter and chaos over the fate of the GST Bill, the government on Thursday selectively leaked out its 'Model Draft of Central/State Goods and Services Tax Act, 2016'. The draft GST law, uploaded on VATinfoline’s portal on Thursday evening, has generated considerable debate about its authenticity, timing and whether it was obtained through lawful means. Putting such fears to rest, VATinfoline, in an email communiqué to its members has clarified: “We would like to confirm that we got it from authentic and reliable source, the document was very much in public domain and of course, we got it by lawful means." Treading on GST zone. Reuters Treading on GST zone. Reuters The portal has further, invited feedback and comments on the Model GST Act, 2016 for publication on its website and circulation to members. This indicates that the government is keen on testing waters by leaking the model GST law unofficially rather than uploading it on its official website. The leak has occurred on the eve of the submission of recommendations on a suitable revenue neutral rate (RNR) agreeable to all stakeholders by a panel led by Chief Economic Advisor, Arvind Subramanian. The report, which was originally slated for a September release, has been delayed on account of the need to accommodate multi-stakeholder inputs. (Report has been submitted to the government. You can read details here.) There are two brand new features that stand out in the leaked draft GST Bill. The first is that GST will be levied on MRP rather than on the transaction value, which means effective tax rates will be higher, killing any joy over discounts either for physical or online purchases. So if Amazon or Flipkart give you a 50 percent discount, you will still pay GST on the full price. Similarly, in a mall, GST will be paid on the MRP even if the actual price is a discounted one. Second, GST will also be levied on securities, which covers the stock market. However, there is no clarity on whether this will be in addition to the prevailing Securities Transaction Tax, or in lieu of it. What is not new, but confirms suspicions already highlighted is that this exercise is more about taxing what should not be taxed as well as what we did not imagine could be taxed. By adding ambiguous phrases in the Constitutional Amendment Bill and adding new definitions, GST, under this Act, can now be levied on a gift, dowry, inheritance and so on. If the amounts are below Rs 50 lakh, you will pay GST at the compounding rate to be set later by the GST Council when it is eventually constituted. Listed below is a preview of the five sections and phrases that have been smartly introduced in the leaked GST Act to enable such taxes. Read together, these changes enable the government to tax anything at any value. Definition of Business in the Act GST is supposed to be a tax on business. But the definition of business includes “ …. any similar activity whether or not it is for a pecuniary benefit”. Pecuniary benefit means monetary benefit. Then the definition of business goes on to say, “ … whether or not there is volume, frequency, continuity or regularity of such transaction”. This implies that the taxman can send you a notice for personal transfers like gift, inheritance, dowry, and so on. ALSO SEE Set standard rate below 18%, scrap 1% additional levy: Here's what CEA's GST report said Set standard rate below 18%, scrap 1% additional levy: Here's what CEA's GST report said Govt making all efforts to pass GST Bill in Winter Session, reaches out to opposition Govt making all efforts to pass GST Bill in Winter Session, reaches out to opposition As BJP, Opposition arm themselves for the Winter Session, are we in for another washout? As BJP, Opposition arm themselves for the Winter Session, are we in for another washout? Definition of Consideration or Transaction Value Any tax has to be levied on a transaction value. However, the definition of consideration contains “ …. The monetary value of any act or forbearance, whether or not voluntary, in respect of, in response to, or for the inducement of, the supply of goods and/or services, whether by the person or by any other person”. Here, ‘consideration’ is equated with ‘value’. In case of an inheritance or gift, there is no sale and hence no consideration, but a monetary value. By introducing the concept of ‘monetary value’ in the definition, the government has effectively widened the scope of the tax. Definition of taxpayer Who is liable to pay a tax? The list includes the term ‘individual’, and not a proprietary ‘concern’ as it should be. This insertion will enable tax on personal transfers. Definition of Supply GST is a tax on ‘supply’. Under the definition of supply, Schedule I has been included, which lists 5 items which will be taxable even if there is no transaction value. This list can be expanded to 20 or more at a later date, as and when the government feels like. Free goods have been explicitly made liable for tax under GST. Another damning feature of this GST Bill is that it has discarded transaction value completely for valuing any transfer or supply between related persons. Though this should be zero in most cases, the government wants to tax personal transfers/ non-commercial transfers on its monetary value. Further, the monetary value is to be determined by its transfer pricing team. Industry sources say the government does not have the capacity to complete the limited international transfer pricing assessments in a time-bound manner. If all domestic transactions are opened up, tax volumes will increase a hundred times more, which will increase the complexity of doing business in India multifold, increase harassment and litigation and also possibly breed corruption. The other nightmare that will be caused by taxing internal transactions is demand for tax on services rendered by any head office of any company to its branch offices in other states. This will effectively serve to balkanize the country from one tax paying unit/ geography to many states with virtual borders. There is a long list of businesses that cannot take input credit as well as a list of scenarios where input credit will be denied. Industry sources say the government’s own estimates point to up to 30 percent additional tax collection through denial of input credit. This again, will make this GST defective while increasing inflation. In essence, the first impact of this leaked GST legislation is that it does not seem to have been written by a progressive government looking to transform India into a business and manufacturing powerhouse, but by a tax collector who is seeking to legalize his entry into every home and office to demand his pound of flesh/bribe. II/III. http://indianexpress.com/article/india/india-news-india/winter-session-govt-to-push-for-passage-of-gst-bill-this-week/ Winter Session: Govt to push for passage of GST Bill this week Prime Minister Narendra Modi had met Congress president Sonia Gandhi and former prime minister Manmohan Singh to solicit the support of the main opposition party By: Express News Service | New Delhi | Updated: December 6, 2015 2:46 am The government business during the next week would include further consideration and passing of the GST Bill, which is officially mentioned as Constitution (122nd Amendment) Bill, 2014. (source: Reuters file photo) The government has lined up substantial legislative business, including the Goods and Services Bill, for the next week though there are no signs of any let-up in Congress and BSP protests in the Rajya Sabha, where important legislations are struck. The two parties are demanding the ouster of Minister of State for External Affairs V K Singh from the government over his alleged anti-Dalit remarks. The government business during the next week would include further consideration and passing of the GST Bill, which is officially mentioned as Constitution (122nd Amendment) Bill, 2014. The Bill was passed by the Lok Sabha earlier, but while under consideration in the Rajya Sabha, the government agreed to refer it to a select committee of the House following a demand by the Opposition. The panel has since given its report. Prime Minister Narendra Modi had met Congress president Sonia Gandhi and former prime minister Manmohan Singh to solicit the support of the main opposition party. The matter has not been resolved between the two sides as of now. The business lined up for the Lok Sabha includes consideration and passage of the High Court and Supreme Court Judges (Salary and Conditions of Service) Amendment Bill 2015. The other Bills readied for the House are the Arbitration and Conciliation (Amendment) Bill, 2015, the Indian Trusts (Amendment) Bill 2015, the Payment of Bonus (Amendment) Bill 2015, and the Industries (Regulation and Development) Amendment Bill 2015. As for the Rajya Sabha, the government plans taking up the Prevention of Corruption (Amendment) Bill, 2013, on which discussion has already begun, among others. III. http://economictimes.indiatimes.com/news/politics-and-nation/gst-bill-cannot-be-rushed-through-congress/articleshow/50058618.cms GST Bill cannot be rushed through: Congress By PTI | 6 Dec, 2015, 12.56AM IST NEW DELHI: Congress today said its demand for inclusion of 18 per cent tax cap in the GST Bill did not mean it is "non-negotiable" but refused to give a timeline on its passage, saying such important legislations "cannot be rushed through". "We have never used the word non-negotiable. We felt there is a need for a cap. There is need for ring-fencing it and an absolute guarantee that it will not be tinkered with... "From what I gather, the Congress President did not use the word non-negotiable, but made it very clear that we would like to have it," Congress deputy leader in Rajya Sabha Anand Sharma said in an interview. His comments came a day after former Commerce and Industry Minister Kamal Nath said BJP's hesitation to put an 18 per cent cap in the Goods and Services Tax(GST) in the Constitution is a "sticking point" in thrashing out a solution. Sharma, a former Union Commerce minister, said the GST Bill will "eventually happen" but refused to give a time-frame when asked whether the measure will become a reality in the ongoing Winter Session of Parliament. "No, I can't say that. You do not rush through such important Constitutional amendments. We would like to see the amendments in-built with the GST Bill. Where is the GST Bill? It is still work in progress...Why should we rush through. Let's see," he said, insisting that Congress would like to see government's proposal on suggestions made by it on the key reform measure. Asked if there were any hopes of its passage in Winter Session, Sharma said, "If there is a consensus. It is good. We want the GST. Let me make it clear that we will support GST." He said "we have to give the country a GST, an effective GST that creates a common market and brings down the transaction cost". Leader of Opposition in Rajya Sabha Ghulam Nabi Azad told CNN-IBN, "We cannot give a timeline and particular date. The ball is in government's court. It depends on how much they address the concerns of the principal opposition party and other major parties as well." On the vexed issue of putting the 18 per cent cap in the Constitution amendment, he insisted on "some legislative binding" on the government so that it cannot change the tax cap through an executive order. He at the same time appeared open to some other 'credible alternative' to address the issue. Maintaining that while he does not see any alternative other than the constitutional amendment, he insisted on "some legislative binding" on the government so that it cannot change the tax cap through an executive order. He at the same time appeared open to some other 'credible alternative' to address the issue. Maintaining that while he does not see any alternative other than the constitutional amendment for achieving this objective, Azad said that should be the case "unless government comes out with an equally tough amendment". While Sharma criticised the government for engaging with the opposition on only one issue in the last 18 months, he said that "the doors are not shut" from Congress's side and the party is expecting the ruling dispensation to come out with its proposal on the measure. "One meeting in 18 months for the passage of just one bill does not bring about a paradigm shift," the Congress leader said, adding that the Prime Minister's "sincerity" will have to be "tested" in the coming weeks and months on the issue of engaging with the opposition. He also attacked Modi over the intolerance debate and the controversial remarks by some ministers despite his assurance in Parliament, saying, "The Prime Minister should live up to his assurances. So far, I'm not convinced that there is sincerity. Sincerity will be established only if the Prime Minister takes some tangible action." Holding that the government-opposition engagement cannot be restricted to the passage of just one bill, Sharma said, "Sincerity will be established if he sustains a constructive dialogue with the opposition on all issues, not just GST". -- Peace Is Doable -- You received this message because you are subscribed to the Google Groups "Green Youth Movement" group. 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