States agree to GST rollout from July 1

The GST (Goods and Services Tax) Council on Saturday cleared the pending rules, including transition provisions and returns, with all the States agreeing to the July 1 rollout of the tax.

"We were discussing the rules and [they] have been completed. Transition rules have been cleared and everybody has agreed for a July 1 rollout," Kerala Finance Minister Thomas Isaac told reporters in New Delhi.

The GST Council last month fitted over 1,200 goods and 500 services in the tax brackets of 5, 12, 18 and 28 per cent.

Union Finance Minister Arun Jaitley on Saturday chaired the 15th meeting of the GST Council, which is scheduled to decide on the tax rate of six items, including gold, textiles and footwear.

Mr. Isaac's statement assumes significance as West Bengal Chief Minister Mamata Banerjee had said that her State would not roll out the new indirect tax regime in its present form.

West Bengal Finance Minister Amit Mitra, however, is attending Saturday's meeting.

As for the transition rules approved by the Council, industry has been demanding some relaxation of the provision of deemed credit.

The draft transition law provided that once the GST is implemented, a company can claim credit of up to 40 per cent of their Central GST dues for excise duty paid on stock held by businesses prior to the rollout.

Several dealers are choosing to wait and watch rather than buy and hold on to inventories. They have lobbied with the government seeking an increase in the credit limit.