Amid signs of slippage of the April 1 GST rollout target, Finance Minister Arun Jaitley today said pending resolution of "turf" issues, GST is a transactional levy that unlike income tax can be implemented anytime during the year.
The Goods and Services Tax (GST), he said, can be implemented anytime between April 1 and September 16, 2017, in accordance with the constitutional amendment legislation that allows a national sales tax by subsuming central and state levies.
The GST Council has resolved 10 issues and only one pertaining to administration of tax is pending, he said.
"It is a transactional tax and not an income tax.
Transactional tax can start in any part of the financial year and therefore, the range of timing when it has to come into force because of constitutional necessity is April 1, 2017 to September 16, 2017. Hopefully, the earlier we do, the better it is for the new taxation system," Jaitley said at the annual general meeting (AGM) of FICCI here.
Saying GST will usher in a common taxation and should lead to a federal bureaucracy, Jaitley felt that both the Centre and states should figure out sharing of the tax assessment.
Ideally, he said, it should be proper for the issues to be resolved at the beginning of financial year on April 1 for the new regime to kick in. "But then, in any case, nobody has the luxury of time," he cautioned.
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