Goods and Services Tax: The Introduction Process: March 2015
Goods and Services Tax: The Introduction Process: March 2015
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G. Raghuram
K.S. Deepa
W.P. No.2015-03-01
March 2015
The main objective of the working paper series of the IIMA is to help faculty members, research
staff and doctoral students to speedily share their research findings with professional colleagues
and test their research findings at the pre-publication stage. IIMA is committed to maintain
academic freedom. The opinion(s), view(s) and conclusion(s) expressed in the working paper are
those of the authors and not that of IIMA.
G. Raghuram
Professor
Indian Institute of Management, Ahmedabad
Email: [email protected]
K.S. Deepa
Graduate Student, Master of Public Policy
National Law School of India University
Bangalore
Email: [email protected]
Abstract
This paper focuses on the process of introducing the Goods and Services Tax (GST), bringing
out the perspectives of different stakeholders and the contentious issues. The GST was expected
to subsume a variety of taxes and simplify the indirect tax regime. The Empowered Committee
(EC) was mandated in 2007, to bring about consensus among the States to move towards GST.
The important stakeholders in the process were the Government of India (GoI), individual States,
industry and the committees commissioned by the GoI or EC. However, the EC faced challenges
since there were issues of control between the Centre and States, perceived loss of revenue by
some States, extent of uniformity across various commodities and their tax rates, input credit
mechanism and dispute settlement. The deadline for the introduction of GST kept getting
postponed due to the slow resolution of the challenging issues. Finally, it was tabled in the
Parliament as the 122nd Constitutional Amendment Bill (CAB) in December 2014.
Written by G Raghuram and KS Deepa. The authors acknowledge the contributions made by Abhiruchi Kaul and
Stuti Bansal.
1
The Constitution (One Hundred and Twenty Second) Amendment Bill 2014,
http://www.prsindia.org/uploads/media/Constitution%20115/SCR%20summary-%20GST.pdf, accessed on
December 21, 2014
2
http://www.empcom.gov.in/content/6_1_AboutUs.aspx, accessed on December 22, 2014
3
Sury, M M (ed) (2006). Taxation in India 1925 to 2007: History, Policy, Trends and Outlook, Indian Tax foundation,
New Delhi
4
https://www.welingkaronline.org/DLP/FINANCE%20-%20CENVAT%20AND%20ITS%20IMPLICATIONS.pdf,
accessed on January 22, 2015
5
Sury, M M (ed) (2006). Taxation in India 1925 to 2007: History, Policy, Trends and Outlook, Indian Tax foundation,
New Delhi
6
http://www.caaa.in/Image/23ugsthb.pdf , accessed on January 22, 2015
7
Report of Task Force on Implementation of FRBM Act, 2003 dated July 16, 2004
8
http://indiabudget.nic.in/ub2006-07/bs/speecha.htm, accessed on Janurary 14, 2015
11
First Discussion Paper on GST released on November 10, 2009, accessed on December 20, 2014
12
Report of Task Force on Goods & Services Tax, accessed on December 19, 2014
13
CST is the tax that the GoI levies on goods that pass among states and distributes it to the states.
14
http://www.thehindu.com/news/national/finance-ministry-sets-up-technology-advisory-
group/article449063.ece, accessed on January 31,2015
15
http://www.thehindu.com/todays-paper/tp-national/states-reject-gst-draft-bill-over-centres-veto-
powers/article552468.ece, accessed on February 2, 2015
16
http://www.thehindu.com/news/national/nilekani-submits-tagup-report-to-pranab/article1156635.ece,
accessed on February 4, 2015
17
Recess of the budget is a month long interval between the first half of the budget session in which the budget is
presented and the second half. Recess is used by PSCs to analyse ministry wise provisions given in the budget.
18
The first version of the draft bill was made by GoI in July 21, 2010. The second version on August 11, 2010,
immediately followed the opposition of State CMs, in which the veto of the FM in GST Council was removed.
19
http://www.jsalaw.com/Admin/uplodedfiles/PublicationFiles/Budget%20news%20letter.pdf, accessed on
February 4, 2015
20 th
This refers to the third draft of the 115 Constitutional Amendment Bill.
21
http://www.ficci.com/spdocument/20238/Towards-the-GST-Approach-Paper-Apri-2013.pdf, accessed on
February 5, 2015
22
The first meeting was attended by Asim Dasgupta to represent the views of the EC during his chairmanship. The
second meet was attended by Sushil K Modi, representing the concerns to be considered by EC in the coming
months.
23
http://www.thehindu.com/news/states-to-look-for-new-chief-to-steer-gst/article2016033.ece, accessed on
February 5, 2015
24
Professional Tax could be levied by the States under article 176 of the Constitution. Based on a 1988
amendment, the upper cap was set at Rs 2500. The States wanted this cap removed since professional
remuneration had increased substantially in the intervening years.
25
The GSTN was a proposed system through which GST returns filing and payments processing for all States was
based on a shared platform through registered PAN network.
26
http://www.thehindu.com/business/Economy/gst-will-help-contain-inflation/article3263158.ece, accessed on
February 6, 2015
27
http://www.thehindu.com/business/Economy/centre-sets-up-study-team-to-evolve-common-tax-
code/article3297428.ece, accessed on February 6, 2015
33
http://www.thehindu.com/news/national/gst-will-be-in-place-by-2014/article4758993.ece, accessed on
February 12, 2015
34
http://www.thehindu.com/business/Industry/agricultural-commodity-prices-to-rise-post-gst-
kelkar/article5007105.ece, accessed on February 12, 2015
35
The figures given were based on a study commissioned by the FC to study implication of GST on the economy.
Refer Task Force on Goods & Services Tax (2009), pp.92-94
36
http://www.prsindia.org/uploads/media/Constitution%20115/SCR%20summary-%20GST.pdf
, accessed on February 12, 2015
37
Article 286(3)(a) of Constitution of India authorises Parliament to declare some goods as of ‘special importance’
and to impose restrictions and conditions in regard to power of States in regard to levy, rates and other incidence
of tax on such goods.
38
http://www.thehindu.com/business/Industry/gst-will-benefit-food-processing-industry-
pawar/article5478407.ece, accessed on February 12, 2015
39
http://www.thehinducentre.com/multimedia/archive/01816/Indian_National_Co_1816826a.pdf, accessed on
February 17, 2015
40
http://www.aamaadmiparty.org/aap-manifesto-2014, accessed on February 17, 2015
41
http://www.bjp.org/images/pdf_2014/full_manifesto_english_07.04.2014.pdf, accessed on February 17, 2015
42
http://www.thehindu.com/news/national/gst-govt-wants-quick-consensus/article6098433.ece, accessed on
February 13, 2015
43
RNR is a taxing procedure in which the taxing authority receives the same tax amount after changing the tax
rates. This is done by off setting lower tax incomes from one group with higher tax income from another
44
http://indiabudget.nic.in/FM_Speech_Delhi_Budget_2014_2015.pdf , accessed on February 14, 2015
45
http://www.thehindu.com/news/national/madhya-pradesh-chief-minister-shivraj-singh-chouhan-fires-salvo-on-
gst/article6285079.ece, accessed on February 14, 2015
46
http://www.thehindu.com/news/national/jaitley-mulling-to-introduce-gst-bill-in-winter-
session/article6651331.ece, accessed on February 13, 2015
47
http://www.thehindu.com/business/Economy/gst-compensation-to-be-included-in-constitutional-
bill/article6608322.ece, accessed on December 13, 2015
48
http://www.thehindu.com/business/Industry/cabinet-nod-for-amended-bill/article6701784.ece, accessed on
February 13, 2015
49
http://business.mapsofindia.com/india-tax/system.html, accessed on February 15, 2015
VAT
(CENVAT)50 (State VAT)51
(Subsume the Following of the Central Tax) (Subsume the Following of the State Tax)
Basic Excise Usage
Special Excise General Sales
Additional Excise Additional Surcharge
National Calamity Contingent Duty Turnover
Education Cess
GST
CENVAT
State VAT
Service
CST
Entertainment
Lottery, Betting, Gambling
Entry (State)
Octroi
Utilities
Surcharge
Source: ctax.kar.nic.in/what_vat/About%20vat%20nnew.pdf,
accessed on February 16, 2015
50
https://www.welingkaronline.org/DLP/FINANCE%20-%20CENVAT%20AND%20ITS%20IMPLICATIONS.pdf,
accessed on February 17, 2005
51
http://www.archive.india.gov.in/citizen/taxes.php?id=5, accessed on February 17, 2015
Mandate of the EC
The objective of the EC when it was formed was (i) to monitor the implementation of uniform
floor rates of sales tax in the States and UTs, (ii) to monitor the sales tax based incentive
schemes in the States, (iii) to decide the milestones and methods of States to switch over to VAT
and (iv) to monitor the reforms in Central Sales Tax (CST). 52
In the year 2007-08, the mandate of the EC was expanded. In addition to the above objectives,
the EC was mandated „to work with the Central government to prepare a roadmap for
introducing GST in country wef April 1, 2010, and to deal with all related matters‟.53
Constitution of the EC
The EC was formed on July 7, 2000, by the GoI. The founding members of the EC were the nine
State FMs of West Bengal, Karnataka, Madhya Pradesh, Maharashtra, Punjab, Uttar Pradesh,
Delhi, Gujarat and Meghalaya. On August 12, 2004, the EC was reconstituted with the State
FMs or Taxation Ministers of all the States and Union Territories (UT) as its members. On
August 17, 2004, it was decided that EC would be registered as a Society under the Societies
Registration Act (XXI of 1860).54 Two additional members of the bureaucracy, Additional
Secretary (Revenue), GoI and Member Secretary, EC, were then added to the EC.
On December 12, 2006, further reconstitution of the EC was considered at the annual general
meeting. As per the bye laws of the Society, three resolutions were adopted. The first resolution
was that the existing structure of the EC with all the State FMs, Additional Secretary (Revenue)
and Member Secretary was reconstituted for a period of three years from 2006. It was also
decided that if the CM of a State or UT who is also the FM of the State, could nominate another
member who is a minister or a political representative in the rank of a minister, to the EC. This
nominated member may be from any political party. The third resolution was to implement the
first two resolutions by changing the Rules of the EC. The Member Secretary was empowered to
make changes to the Rules.
52
http://www.empcom.gov.in/WriteReadData/UserFiles/file/Annual%20Report/Annual_Report_2007_2008_en.pd
f, accessed on February 9, 2015
53
Ibid., pp.23
54
http://www.empcom.gov.in/WriteReadData/UserFiles/file/Annual%20Report/Aunual%20Report%202006-
2007_Eng.pdf, accessed on February 9, 2015
The EC Secretariat had the Member Secretary, EC as the highest ranking official. The Member
Secretary was to be a retired senior level bureaucrat. There was also an Advisor to EC, who was
a former bureaucrat. Officer on special duty was usually selected from the senior level
bureaucracy in the sales tax department of any member State. There were also two officers in the
role of a Senior Administrative Officer and Principal Private Secretary in the Secretariat. In
addition, there was a part time finance and an assistant finance officer. All the officers were
designated as members on an annual basis and their tenure extension was considered at the
annual meeting of the EC.
Consultative Committee
On December 6, 2004, a consultative committee was formed for discussing issues at the national
and State level, related to the implementation of VAT. Apart from the Chairman and member
secretary of the EC, the committee had representatives from the Confederation of Indian
Industries (CII), Federation of Indian Chambers of Commerce and Industry (FICCI), The
Associated Chambers of Commerce of India (ASSOCHAM), Conferederation of All India
Traders, Federation of All India Trader‟s Association and Bharatiya Udyog Vyapar Mandal
(BUVM).
Table 1
Direct Tax
Levied by Name
Centre Income other than agricultural income
Corporate
Centre and Appropriated by the States Estate and succession duties other than
on agricultural land
55
http://www.investopedia.com/terms/d/directtax.asp, accessed on February 15, 2015
Levied by Name
Centre Customs Duty
Sale or purchase of goods in interstate
trade
Levied by the Centre, Collected and Excise Duty except on alcohol and
Appropriated by the States narcotics not contained in medical or
toilet preparation
Rates of stamp duties on financial
documents
As per estimates, for a developing country, tax to GDP ratio must be in the ratio of 18 per cent,
in order to ensure economic growth. For a developed country, the ratio is in the range of 70 per
cent. At 16.49 per cent, India had one of the lowest tax to GDP ratio and third lowest tax base
among the G20 countries in 2013. The tax to GDP ratio for direct and indirect taxes stood at 5.97
and 10.52 respectively.
Table 1
Tax to GDP Ratio from 1950-51 to 2013-14
Tax 1950- 1960- 1970- 1980- 1990- 2000- 2005- 2010- 2013-
51 61 71 81 91 01 06 11 14
Direct Tax 2.22 2.24 2.12 2.18 2.09 3.31 4.54 5.78 5.97
to GDP
Ratio
Indirect 3.81 4.86 7.04 9.22 11.09 9.23 9.98 9.35 10.52
Tax to GDP
Ratio
Total Tax 6.03 7.10 9.16 11.40 13.18 12.54 15.52 15.13 16.49
to GDP
Ratio
Source: Public Finance Statistics 2013-1457
India‟s tax to GDP ratio can be analysed before and after the 1991 comprehensive tax reforms.
Till 1980s, we an observe a steady increase in Tax to GDP ratios due to two important reasons.
There was a steady growth rate of the economy and quantitative restrictions were progressively
56
http://www.investopedia.com/terms/t/tax-to-gdp-ratio.asp, accessed on February 10, 2015
57
http://finmin.nic.in/reports/IPFStat201314.pdf, accessed on February 10, 2015
“In terms of tax composition, the proportion of direct taxes has been decreasing from 21 percent
in 1970-71 to 14 percent in 1990-91. After the economic reforms, the share of direct taxes has
grown steadily to 24 per cent in 1997-98. This was due to an increase in both increase in income
and corporate tax. However, it is not clear how much of the increase is due to the increase in the
pay omission wages and how much of the increase is attributable to better tax compliance.”59
The fastest growth rate of any tax category during the period was for customs that steadily
increased from 11 per cent in 1970-71 to 23 per cent in 1990-91. After the introduction of import
duties in 1992, the revenue from customs fell due to reduction in tariff rates as part of Structural
Adjustment Program (SAP).60
The decline in tax to GDP ratio after the reforms is hence attributable to the decline in the yield
of indirect taxes. One reason for the lower revenue from indirect taxes was the reduction of tariff
rates that was drastically high before the reforms. This was not offset by calibrating the excise
duties. Therefore, both tariffs and excise duties showed a decline of 2.6 and seven percentage
points respectively.
The tax to GDP ratio of the Centre and States during the period can be compared. The decline in
the ratio for Centre has been faster than the States due to the reduction of tariffs.
58
http://www.unescap.org/sites/default/files/apdj-7-2-3-rao.pdf, accessed on February 10, 2015
59
Ibid., pp. 71.
60
Structural Adjustment Programs (SAPs) are economic policies for developing countries that have been promoted
by the World Bank and International Monetary Fund (IMF) since the early 1980s by the provision of conditional
loans.
TAGUP was a seven member GoI advisory group set up by the FM on June 8, 2010. The
mandate of TAGUP61 was to look into technology part of five large financial sector projects. It
was headed by Nandan Nilekani. The other members were
Key Recommendations
TAGUP submitted its report on February 5, 2011. It had two key recommendations.62
The TAGUP has suggested that for complex IT-intensive projects, NIUs working in the spirit of
partnership with the government be put in place to handle all aspects of IT systems. NIUs should
be financially independent and empowered to take quick and efficient business decisions
pertaining to attracting and retaining talent, procurement, rapid response to business exigencies
and adopting new technologies, among other things.
The report also mentioned that, “every project should have a dedicated Mission Leader within
the government with a Mission Execution Team. The team should be manned by personnel, who
possess a diverse set of skills, including intimate familiarity with the government processes,
specialisation in verticals such as technology, outreach, law, as well as the ability to manage a
large decentralised organisation, among others. The group also recommends certain monetary
and non-monetary incentives for the team.” 63
61
http://en.wikipedia.org/wiki/TAGUP, accessed on February 5, 2015
62
http://www.thehindu.com/news/national/nilekani-submits-tagup-report-to-
pranab/article1156635.ece, accessed on February 5, 2015
63
Ibid.
DTC changed the existing rates of income taxes in India. Companies and unincorporated bodies
would be taxed at 30 percent of their total income. A non profit organisation would not have to
pay tax for income below Rs 1 lakh. For income above Rs 1 lakh, they would be charged at the
rate of 15 percent of their total income. For individuals, income tax was exempted for income
below two lakh rupees. Tax rate was 10 per cent, 20 percent and 30 per cent respectively for
incomes between 2-5 lakhs, 5-10 lakhs and above ten lakhs.
The DTC proposed a minimum alternate tax on companies. The tax had to be paid in case the
normal income tax of a company was less than the tax on the book profit of a company,
applicable at 20 per cent.
Marginal Tax
The DTC had proposed a marginal tax on certain investments such as provident funds and
pension schemes at the time of redemption.
Wealth Tax
Wealth above one crore rupees would be taxed at one per cent. Wealth below one crore rupees
was exempted from the wealth tax.
Tax Deductions
The DTC allowed deductions of savings up to one lakh rupees to approved funds, five lakh
rupees to life insurance and Rs 50,000 for health insurance or education of children. Deduction
on housing loans would be up to Rs 1,50,000. There would be no limit on deductions on loans
for higher education.
64
http://www.prsindia.org/uploads/media/Direct%20Tax%20Code,%202010.%20Bill%20Summary.pdf, accessed
on February 15, 2015
For assets on which securities transaction tax is payable, the long term capital gains (if held for
more than one year) would not apply. Short term capital gains would be computed as half of the
actual gains. For other investment assets, long term capital gains would be given indexation
benefits.
Types of CAB
There are two types of bills that seek to amend the Constitution.66 They are
i. Bills that have to be passed by Parliament by Special Majority.67
ii. Bills that have to be passed by Special Majority and also to be ratified by not less than
one-half of the State Legislatures.
„The procedure for such bills is prescribed under Article 368 (2) of the Constitution. These can
be introduced in either House of Parliament. Such bills can never be treated as Money Bills or
Financial Bills. No recommendation of the President is needed for introducing these bills. These
bills have to be passed by a majority of the „total membership‟ of that House and by a majority
of not less than two-thirds of the members of that House present and voting.
This comprises of Constitutional Amendment Bills which seek to make any change in articles
relating to the following.
a. The Election of the President.
b. The extent of the Executive Power of the Union and the States.
c. The Supreme Court and the High Courts.
d. Any of the Lists in the Seventh Schedule.
e. The representation of States in Parliament.
f. The provisions of Article 368 itself‟.68
The consensus building procedure for CAB have procedures mandated under the Rules of
Procedures and Conduct of Business in the Lok Sabha.69 The procedures for CAB is covered
under Chapter XI in sections 155-159.
65
http://en.wikipedia.org/wiki/Amendment_of_the_Constitution_of_India, accessed on February 15, 2015
66
http://www.desikanoon.co.in/2014/05/amendment-procedure-in-india.html, accessed on February 15, 2015
67
Special majority of Parliament refers to two thirds of its members present and voting
68
Ibid.
Under the mandate of the EC and PSC, there are provisions to present discussion papers, form
sub committees, focus groups and special advisory groups.
69
http://164.100.47.132/LssNew/rules/RULES-2010-P-FINAL_1.pdf, accessed on February 15, 2015
1. Implementation of GST
The PSC noted that implementation of the GST should be preceded by adequate groundwork on
the experience of other countries and a credible study on the impact of the GST regime on state
revenues.
2. Compensation Mechanism
PSC recommended a well defined and permanent compensation mechanism. For this purpose, it
suggested the creation of a GST Compensation Fund under the administrative control of the GST
Council.
Under the 115th CAB, CST was to be replaced by IGST giving exclusive rights to GoI to levy tax
on interstate trading of good and services and imports. In principle, IGST was thought of as
revenue neutral.
The PSC favoured the Modified Bank Model propose by the 13th FC. Under this model, the GoI
and the States were to identify a nodal bank that would receive the CGST and SGST and act as a
„clearing house‟ for the tax.
4. Special Powers
PSC recommended that though the power to notify declared goods vested with GoI, the
Parliament should have the power to restrict and impose conditions on the recommendations of
the GST council regarding the same.
The PSC also recommended the addition of a subclause that enabled the Parliament to raise
additional taxes in exceptional circumstances.
PSC recommended that Jammu & Kashmir and the northeastern States should be specified under
the „special status category‟.
Another recommendation of the PSC was that the States must be allowed to increase GST based
on a predetermined floor rate.
70
http://www.prsindia.org/uploads/media/Constitution%20115/SCR%20summary-%20GST.pdf, accessed on
February 15, 2015
The PSC recommended that GDSA be replaced by the GST council that is empowered to settle
disputes.
The PSC recommended that HTS should be the guiding principle and not the obligatory feature
of the GST.
7. IT Infrastructure
Regarding the IT infrastructure, the PSC proposed that the Centre provide the finance and
capacity building facilities in the States.
8. Monitoring
The PSC also suggested the formation of a GST evaluation committee to monitor and evaluate
the implementation of GST. The mandate was to study the immediate impact of GST on
inflation, GDP, retail price and other parameters.
9. Delegated Legislation
The PSC opined that specific concerns of the State like exemptions, threshold and rates be
included in the bye laws and rules and not in the CAB itself.
71
Public services will not include Railways, Post and Telegraph, other commercial Departments, Public Sector
enterprises, banks and Insurance, health and education services
72
This category refers to those areas without unanimous consensus from the States
73
This means 100% compensation for the first three years, 75% for the fourth year and 50% for the fifth year
SC final
appellate
authority
Input Credit IGST with GoI Modified Bank IGST GoI to levy IGST Resolved
acting as a Model with without
clearing house nodal bank consensus
for input tax acting as a
credit clearing house
for input tax
credit.
ITEC was formed by the GoI to review the existing structure of the indirect tax system on July
19, 1976 under the Chairmanship of LK Jha, the former governor of the RBI. ITEC submitted its
report in January 1978.
The report studied the taxes being imposed for different goods at various levels. It found major
differences in the rates and methods of taxes being imposed in several States. ITEC suggested
VAT to overcome the prevalent multiple tax rate structure. The report defined VAT as “a tax to
be paid by all sellers of goods and services, other than those specifically exempted, on the basis
of value added by their respective firms.”
It stated that implementation of VAT in other countries was “preceded by a detailed public
debate in chambers of commerce, industry, associations and other firms; in Parliament and
educational institutions.”
The report concluded that from an economic point of view, a tax system covering the addition of
value at all points of progression and trade is the best, as long as it does not generate difficulties
of cascading and distortion in relative factor prices.
On the other hand, the report also said that even though one integrated system based on VAT is
the best possible solution, India should opt for the second best solution.VAT was to be applied to
the manufacturing State (MANVAT) along with a restructured system of sales tax.
The long term objective of MANVAT would be to apply it not only at the manufacturing stage,
but extends it to cover imports, thereby freeing inputs from taxation which is the crucial principle
of VAT. The report further gave the details of how the MANVAT would be applied to the then
current taxation system.
Long Term Fiscal Policy (LTFP) 198575
LTFP was announced in the Union budget of 1985-86 by V P Singh.
The LTFP set out the broad direction and strategy for fiscal reforms, mainly taxation, to further
the objectives of growth and social justice. The policy proposed reforms in the structure of
customs and excise duties by the merging of various central excise duties into a single rate.
74
Sury, MM (2006). Taxation in India: History, Policies, Trends and Outlook, Indian Taxation, New Delhi
75
http://indiabudget.nic.in/es1985-86/6%20Fiscal%20Policy%20and%20Government%20Budget.pdf, accessed on
February 16, 2015
76
http://www.finmin.nic.in/the_ministry/dept_revenue/Executive_Summary.pdf, accessed on February 16, 2015
77
http://www.finmin.nic.in/kelkar/report.pdf, accessed on Februray 16, 2015
1. Sury, M M (ed) (2006). Taxation in India 1925 to 2007: History, Policy, Trends and
Outlook, Indian Tax foundation, New Delhi
Reports
4. Thirteenth Finance Commission (2009). Report of Task Force on Goods & Service Tax.
5. ctax.kar.nic.in/what_vat/About%20vat%20nnew.pdf,
6. http://business.mapsofindia.com/india-tax/system.html
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