Centre-state discord on GST dual control worries India Inc: KPMG

The States and the Centre were not able to come to a consensus yet again on the issue of dual control when the GST Council met on Saturday. The impasse is a matter of concern for the corporates, who feel it may destabilise the economy and hurt business, said Sachin Menon, Head Of Indirect Tax, KPMG. An agreement on dual control is crucial and once resolved, other topics like state compensation and decision of rates can be resolved amicably, he said.MS Mani, Senior Director Of Indirect Tax, Deloitte, is optimistic that the GST Bill can be passed in the Winter Session of the Parliament if the GST Council comes to a consensus the next time it meets on December 11 and 12. The Winter Session concludes on December 16.Even if it is passed in the Budget Session, Mani says implementation of the Goods and Services Tax is possible by April 1."The Centre is keeping the assessees at the forefront of the decision. This is why it is not showing any haste by opting for voting on matter of dispute," said Mani.But contrary to Mani's views, Pratik Jain, Leader Indirect Tax, PwC, is of the opinion that several IT systems and processes of companies have to be tweaked which may take a lot of time. The corporates cannot shift to new processes only based on the draft GST Bill. The Council needs to finalise the bill soon, he added.Meanwhile, the taxpayer is not concerned who assesses his or her taxes, but it is advisable that small taxpayers not be assessed by both the Centre and State, says Uday Pimprikar, Tax Partner, Ernst & Young. He says the procedure and law related to the indirect tax reform is not very clear to the public. There are many clarifications that the Finance Minister Arun Jaitley needs to give to the people, Pimprikar said.Watch video for more.