Economic Times: September 27, 2016
News Delhi: The government has put out the draft rules for the Goods & Services Tax for discussion ahead of the September 30 meeting of the Centre and states to discuss the regulations. In view of the tight deadline, the finance ministry has asked for feedback by September 28. Rules relate to registration, invoice and payments, laying down procedures, guidelines and documentation.
The GST Council will discuss the rules on September 30. The government has prescribed a largely online process for registration and laid down strict timelines for completing the process. "We intend to have these rules approved by GST council in its meeting on 30th September. So that business systems can be modified by all," Revenue secretary Hasmukh Adhia tweeted.
"It's encouraging to see that the rules largely envisage electronic interactions between the tax authorities and industry, with only need-based physical intervention (like verification of premises on the application filed for registration)," said Pratik Jain, Leader - Indirect Tax, PwC India. "Further, all the PAN details are to be verified online with the CBDT database, which is expected to bring larger part of the business in the mainstream."
Much of this had already been explained through the FAQs issued by the finance ministry earlier, giving industry an advance peak into the details. Rules provide for complete electronic payment of tax and adjustment of credit and a unique ID number will be generated by the common portal for GST transactions for every debit or credit transaction. This will ensure a proper audit trail.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.