GST Council

1.02.18 Arunachal Pradesh(APPSC) Current Affairs

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NORTH-EASTERN STATES

  • Northeast states report spike in HIV rate in those injecting drugs

 

  • Close to 20% injecting drug users (IDUS) in Mizoram have HIV, compared to a nationwide prevalence of 6.26% among drug-users, shows data from National Aids Control Organisation’s (NACO) HIV Sentinel Surveillance 2017 released last month.

 

  • Six states in the region account for 43.5% of IDUS who tested positive for HIV in India.

 

  • The states in the region with higher than usual national prevalence among IDUS are Mizoram (19.81%), Manipur (7.66%), and Tripura (8.55%).

 

  • Needle-sharing among IDUS is one of the reasons driving the HIV epidemic in the region, with seven north-eastern states accounting for about 6% of all new HIV infections.

 

  • The health ministry began an epidemiological investigation in December last year to understand reasons why HIV prevention and treatment programmes are not working in the region.

 

  • The virus has spread in the general population through drug use and controlling its transmission now has become a huge challenge.

 

  • For India to meet the goal of ‘End of AIDS’ as a public threat by 2030, it is imperative to bring the numbers down. 

     

    INTERNATIONAL

     

    ·        Melbourne To Host Final Of 2020 World T20

     

    • Melbourne Cricket Ground will host the final of both the men’s and women’s World Twenty20when the tournaments come to Australia in 2020.
    • It will mark the first time the tournaments are held as stand-alone events in the same year in the same country.
    • The women’s final will coincide with International Women’s Day (8th March).

     

     

    ·        Google Introduces A New App Named as Bulletin

     

    • Google introduced a new app named “Bulletin”that allows anybody to submit stories for and about their communities.
    • This is a free, lightweight app for telling a story by capturing photos, video clips and text right from your phone, published straight to the web.
    • The app is made for contributing hyperlocal stories about your community.
    • The application has been launched as a limited pilot project and is available in Nashville, Tennessee, and Oakland, California.

     

     

    NATIONAL

     

    ·        New e-way bill system comes into force to bring uniformity across the states

     

    ð  New e-way bill system comes into force to bring uniformity across the states for smooth inter-state movement of goods

     

    ð  A new e-way bill system will come into effect.

    • Under the new system, every transporter will have to carry a system-generated bill to move goods from one place to another.
    • The e-way bill systemintroduced to bring uniformity across the states for seamless inter-state movement of goods.
    • Under the Goods and Services Tax, interstate transportation of goods beyond 10 kilometers with a value of 50,000 rupees and above, will mandatorily require the e-way bill.
    • Last month, the GST Council decided to implement the e-way bill mechanism throughout the country from 1st of February, 2018.

     

    • PM Narendra Modi writes a book titled ‘Exam Warriors’ for students

     

    • Prime Minister Narendra Modi has written a book for students who battle stress and anxiety during examinations.

     

    • The book, slated to be released on February 3, talks about the ways in which students can tackle the stress.

     

    • The book has been titled ‘Exam Warriors’ and mentions various means such as practicing yoga.

     

    ·        Union Government launches GeM 3.0

     

    • The Ministry of Commerce & Industrylaunched the third version of the Government e-Marketplace (GeM 3.0).
    • The earlier version GeM 2.0 was launched a GeM 2.0 was launched as pilot project in August 2016.
    • GeM 3.0 will offer standardized and enriched catalog management, powerful search engine.
    • GeM is an Online Market platform to facilitate procurement of goods and services by various Ministries and agencies of the Government.

     

    • Wi-Fi hotspots for rural areas proposed

     

    • The government has proposed to set up five lakh Wi-Fi hotspots which will provide broadband access to five crore rural citizens.

     

    • Allocation of Rs 10,000 crore has been provided in 2018-19 for creation and augmentation of telecom infrastructure.

     

    ·        Govt proposes key amendments to PMLA

     

    • The Central government has proposed changes to various provisions of the Prevention of Money Laundering Act (PMLA) through the Finance Bill, including a crucial amendment that empowers the Special Court to restore confiscated assets to the rightful claimants even during the trial.

     

    • The government has introduced a new Sub-Section (2) of Section 66, making it mandatory for the ED to share relevant details with other agencies.

     

    • A key proposed change is in the definition of “proceeds of crime”, which now also allows the ED to proceed against assets of equivalent value located even outside the country.

     

    • A further limit of ₹1 crore involved in the alleged offence would allow the court to apply bail provisions more leniently to less serious PMLA cases, said the government.

     

    • Another suggested change is the inclusion of Section 447 of the Companies Act in the list of scheduled offences under PMLA. It will allow the Registrar of Companies to report suitable cases to the ED for money laundering probe.

Arunachal Pradesh Tax and economic reforms

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Arunachal Pradesh Tax and economic reforms

Major Land Mark Economic Reform Goods and Service tax

The launch of GST on July 1, 2017 was indeed a historic occasion and a paradigm shift as India moved towards ‘One Nation, One Tax, One Market’.

Benefits:

  • Consumers – Removal of cascading in taxes and efficiency gains will bring down the overall cost paid by consumers.
  • Trade and Industry –
  1. It will benefit because of uniform single indirect tax throughout the country, seamless flow of input tax credit, removal of tax related barriers ate inter-state borders, reduced logistic costs, end to end IT enabled system and minimal interface with tax authorities.
  2. Exports will become more competitive and Make in India programme will get a major fillip due to increased ease of doing business and protection from cheap imports as all imports will be subject to integrated GST, in addition to the basic custom duty.
  • Manufacturers – They will be able to take rational decisions with regard to sourcing of raw materials, location of manufacturing and warehousing facilities.
  • Central and State Governments – Will witness tax buoyancy and the tax collection costs will reduce significantly.
  • Ease of doing business –
  1. Simpler tax regime with fewer exemption
  2. Reduction in compliance costs – no multiple record keeping for a variety of taxes so lesser manpower needed
  3. Simplified and automated procedures for various processes such as registration, returns, refunds etc.
  4. All interaction to be through the common GSTN portal – minimal public interface between the tax payers and administration
  5. Harmonization of laws, procedures and rates of taxes

Need for Constitutional Amendment:

  • Indian constitution had clearly demarcated the fiscal powers between Centre and States as per the entries in Union and State list.
  • Centre – Levy tax on the manufacture of goods (except alcoholic liquor for human consumption, opium, narcotics etc.). Centre, alone, is also empowered to levy service tax.
  • State – Levy tax on the sale of goods.
  • In case on inter-state sales, the Centre had power to levy tax (the Central Sale Tax) by the tax was collected and retained entirely by the states.
  • Amendment concurrently empowered the Centre and States to levy and collect GST.

Journey to launch of GST in India:

  • The idea of GST was first mooted in 2000 and a committee was set up under the chairmanship of Asim Dasgupta (the then West Bengal Finance Minister).
  • In 2003, another task force under Vijay Kelkar to recommend tax reforms were formed.
  • During the presentation of 2006-07 union budget, the govt. proposed to introduce GST from April 1, 2010.
  • The constitutional amendment (122nd) bill was introduced in 2014 and finally became act in September 2016. It became the 101st Amendment act.

Constitution (101st Amendment) Act 2016:

  • It empowers both, the Centre and the States, to levy and collect GST.
  • The GST has been defined as a tax on supply of goods or services or both, except supply of alcoholic liquor for human consumption.
  • Thus, alcohol for human consumption has been kept out of the GST by way of the definition of GST in the constitution.
  • On the other hand, five petroleum products viz. petroleum crude, motor spirit (petrol), high speed diesel, natural gas and aviation turbine fuel have temporarily been kept out and GST council would decide the date from which they shall be inducted in GST.
  • Inter-State supply of goods and services (Integrated GST, IGST) would be levied and collected by Centre. It will ensure that the GST is truly destination based consumption tax and there is seamless flow of input tax credit, even when goods and services are moving from one state to another state.

The GST Council of Arunachal Pradesh Tax and economic reforms:

  • The guiding principle of the GST Council is to ensure harmonization of different aspects of GST between the Centre and the States as well as among States with a view to develop a harmonized national markets for goods and services within India.
  1. Chairperson – Union FM,Arunachal Pradesh Tax and economic reforms
  2. Vice Chairperson – to be chosen amongst the ministers of State Govt.
  3. Members – MOS (Finance) and all Ministers of Finance/Taxation of each state
  4. Quorum – 50% of total members
  5. States – 2/3 weightage and Centre – 1/3 weightage
  6. Decision by 75% majority (the weightage of voting has been so assigned that it is not possible for either the Centre or the states to take any decision unilaterally)
  • However, till now all the decisions in the council have been taken by consensus and there has not been any occasion for voting.
  • The difficult issue of cross empowerment and administrative division of tax payers between the states and center was resolved in a true spirit of give and take.
  • Council to make recommendations on everything related to GST including laws, rules and rates etc.
  • The newly created constitutional body, the GST Council, has emerged as a new model of cooperative federalism, where the centre and the states are willing to share and pool in their sovereignty and give fiscal space to each other.

Compensation to the Arunachal Pradesh Tax and economic reforms:

  • As GST is a destination based tax, there was an apprehension that many manufacturing states might lose revenue after implementation of GST.
  • Hence, the act provides for the compensation to the States for loss of revenue arising on account of implementation of GST for a period of 5 years.
  • The compensation act has fixed the revenues of the year 2015-16 as the base year revenues and further a nominal annual growth rate of 14% has been provided.
  • The Act provides for levying of a cess, which shall be used for compensation to the states in case there is loss of revenue. This cess shall be levied on luxury items and goods.

Deciding Tax Rates of Arunachal Pradesh Tax and economic reforms:

  • While deciding tax rates, the council has tried to achieve balance between three objective:
  • To ensure that interests of poor and vulnerable sections of the society are protected and goods of mass consumption and essential commodities remain at affordable level.
  • To ensure that the overall revenues of the States and the Centre are protected.
  • To see that the tax incidence on the goods and services does not increase or decrease substantially from the present incidence of tax.
  • Hence four tax rates of 5%, 12%, 18% and 28% slabs have been decided.

Supporting Medium and Small Enterprises:

  • The law provides for an exemption threshold where by it is not mandatory for a business whose aggregate turnover in a financial year is less than Rs. 20 lakh ( Rs. 10 lakh for special category states) to register.
  • There is also a composition scheme under which an eligible registered person, whose aggregate turnover in preceding financial year did not exceed Rs. 75 lakhs can opt to file summarized returns on a quarterly basis.
  • The taxpayers dealing in goods and restaurant sector can only opt for the composition
  • Under the composition scheme, the manufacturer will pay tax at the rate of 1%, restaurant sector @ 2.5% and traders @ 0.5% of the turnover each under CGST act and SGST act.
  • However, the service providers and the tax payers making inter-state supplies or making supplies through e-commerce operators are not eligible for composition scheme.

Tracking Tax leakages and Corruption:

  • The mechanism of matching of invoices will ensure that the input tax credit of purchased goods and services will only be available if the taxable supplies received by the buyers get matched against the taxable supplies received by the suppliers.
  • The GST Network is responsible for the IT backbone and is geared to generate more than 3 billion invoices per month.
  • It will check tax frauds, tax evasion and would bring more and more businesses into formal economy.
  • Tax payers can register, file returns and make payment of taxes on a single portal on the
  • Even in rare case, if the tax payer is to interact with the tax authorities, he will have to interact with only one authority either from the State govt. or from the Central govt.

Conclusion:

The launch of GST is a transformative reform and will change the way businesses are done in India. Radical change of this magnitude is bound to bring about some pain bu the gains of little pain are going to be many and long lasting for the Indian economy.