A GST Council has to be formed to determine the actual tax rates and modalities and then the Cabinet has to approve the state, central and integrated GST laws. There is still no clarity in the GST Bill about who the tax collection authority will be for GST, whether it will be the banks or some other body authorised by the government. During the Monsoon Session of Parliament, Former Finance Minister P. Chidambaram had, during the debate on GST, said that the GST Bill was clumsy as it did not mention where the amount collected would go. Banks have not started any such pilots,” the Expenditure Department official said. Now such companies will have to register themselves in every state where consumption is happening, since GST is a consumption tax.

Source: The Hindu August 27, 2016 17:37 UTC