14-Apr-2017: Parliament passes HIV and AIDS (Prevention and Control) Bill, 2017.

Parliament has passed a crucial Bill to ensure equal rights to the people infected with HIV and AIDS in getting treatment and prevent discrimination of any kind. The Human Immunodeficiency Virus (HIV) and Acquired Immune Deficiency Syndrome - AIDS (Prevention and Control) Bill, 2017 was passed by the Lok Sabha on 11th April and by the Rajya Sabha on March 21 this year.

HIV infection in India was first detected in 1986 amongst female sex workers in Chennai. Though the prevalence of HIV has been decreasing over the last decade, the country still has the third largest HIV epidemic in the world only after South Africa and Nigeria. India’s newly passed HIV bill is the first of its kind in south Asia. South Africa and Nigeria have also passed laws banning some forms of discrimination. There are approximately 21 lakh people estimated to be living with HIV in India. The country reported around 86000 new HIV infections in 2015, showing 66 per cent decline from 2000. Around 68000 people died of AIDS related causes in 2015. The Bill would support National AIDS Control Programme in arresting new infections and achieving the Sustainable Development Goals target of ending the epidemic by 2030.

One of the main reasons such a law was required in the country is that HIV/AIDS has been associated with a lot of stigma and discrimination. Though discrimination has diminished over the years due to government efforts and contribution of civil society, it continues still. The new law will go a long way in ending this discrimination. The Bill defines discrimination as denial or discontinuation of employment, education, healthcare services, renting or residing property, public or private office, insurance and public facilities. Unfair treatment in any of these categories by State or any person will be seen as discrimination, inviting action.

The Bill states that nobody should be tested for HIV as a pre-requisite for securing a job, accessing health care or education. It prohibits publishing of information or advocating of feelings of hatred against HIV positive persons by anybody. For ensuring privacy, the Bill prohibits HIV testing or medical treatment without informed consent. However, informed consent does not include screening by licensed blood banks, medical research or any such purpose where the test is anonymous and not meant to determine the person’s HIV status. An HIV positive person will be required to disclose his/her HIV status only if required by a court order.

There are also penal provisions for discrimination and breach of confidentiality. Whosoever does not adhere to the provisions of the bill, will be penalised. Civil and criminal proceedings will be launched against such persons. Action would also be taken against those who attempt to block the implementation of the bill.

Violating the confidentiality of HIV positive persons could lead to imprisonment of upto two years and a fine of upto Rs one lakh.

Though treatment for AIDS or anti-retroviral therapy is currently free in government hospitals, the Bill goes a step further by making treatment a legal right of infected people. “Every person in the care and custody of the state shall have right to HIV prevention, testing, treatment and counselling services,” it says. Therefore, the central and state governments will provide treatment for AIDS and opportunistic infections along with infection management services. The central and state governments will also have to take measures to prevent the spread of HIV or AIDS and facilitate access of persons with HIV or AIDS to welfare schemes especially for women and children. The government spent Rs 2, 000 crore on anti-retroviral therapy last year.

The newly passed Bill has provisions to safeguard the property rights of HIV positive people. Every HIV infected person below the age of 18 years has the right to reside in a shared household and enjoy the facilities of the household. It also states that cases relating to HIV positive persons should be disposed of by courts on a priority basis.  If, an HIV infected or affected person is a party in any legal proceeding, the court may pass orders that the proceedings be conducted by suppressing the identity of the person, in camera, and to restrain any person from publishing information that discloses the identity of the applicant.  When passing any order with regard to a maintenance application filed by an HIV infected or affected person, the court shall take into account the medical expenses incurred by the applicant.

The Bill requires appointment of ombudsman by each state government to inquire into complaints related to the violation of the Act and the provision of health care services.  The Ombudsman shall submit a report to the state government every six months stating the number and nature of complaints received, the actions taken and orders passed. There is also a provision of penalty of Rs 10,000 if the ombudsman’s order is not complied with.

The process of drafting the Bill had started in 2002, when the need for a law was recognised by civil society members, people living with HIV and the government. The Bill is an initiative of the Lawyers Collective, a non-governmental organization. It was presented to the National AIDS Control Organisation (NACO) in 2006. The Bill was drafted after nationwide consultations with stakeholders including people living with HIV, communities most vulnerable to HIV infection such as sex workers, men having sex with men, transgenders, and drug users, healthcare workers, children’s organisations, women’s groups, trade unions, lawyers, and state AIDS control societies.

20-Mar-2017: Cabinet approves four GST Bills

The Union Cabinet has approved the following four GST related bills:

1. The Central Goods and Services Tax Bill 2017 (The CGST Bill)
2. The Integrated Goods and Services Tax Bill 2017 (The IGST Bill)
3. The Union Territory Goods and Services Tax Bill 2017 (The UTGST Bill)
4. The Goods and Services Tax (Compensation to the States) Bill 2017 (The Compensation Bill)

The above four Bills have been earlier approved by the GST Council after thorough, clause by clause, discussion over 12 meetings of the Council held in the last six months.

The CGST Bill makes provisions for levy and collection of tax on intra-state supply of goods or services for both by the Central Government. On the other hand, IGST Bill makes provisions for levy and collection of tax on inter-state supply of goods or services or both by the Central Government.

The UTGST Bill makes provisions for levy on collection of tax on intra-UT supply of goods and services in the Union Territories without legislature. Union Territory GST is akin to States Goods and Services Tax (SGST) which shall be levied and collected by the States/Union Territories on intra-state supply of goods or services or both.

The Compensation Bill provides for compensation to the states for loss of revenue arising on account of implementation of the goods and services tax for a period of five years as per section 18 of the Constitution (One Hundred and First Amendment) Act, 2016.

The Government is committed to early introduction of GST, one of the biggest reforms, in the country as early as possible.  GST Council has decided 1st July as the date of commencement of GST.  The Finance Minister in his Budget Speech has mentioned that country-wide outreach efforts will be made to explain the provisions of GST to Trade and Industry.

10-Mar-2017: Goods and Service Tax (GST) Bill

The 122nd Constitution Amendment Bill, 2014 has been passed by the Parliament and after ratification by fifty percent of the States, the same has been enacted as 101st Constitution Amendment, Act, 2016. No Goods and Service Tax (GST) Bill has so far been passed.

The Central Goods and Services Tax (CGST) Bill, Integrated Goods and Services Tax (IGST) Bill and Union Territory Goods and Services Tax (UTGST) Bill will be passed by Parliament. Each State, including Union territory with Legislature will pass its own State Goods and Services Tax (SGST) Bill.

It is the intended objective that the GST will simplify the trade and maintenance of accounts (income/ expenditure) and also check tax evasion in the country

GST is expected to have positive effect on trade and consumers in, inter-alia, the following manner:-

1. Simpler tax regime;
2. Reduction in multiplicity of taxes;
3. Mitigation of cascading of taxes expected to result in reduction in final price of goods or services;
4. Anticipated reduction in compliance costs ;
5. Uniform Law, Rules, Tariff – between Centre and States and across States;
6. Simplified and automated procedures.

4-Mar-2017: Goods and Services Tax GST) Council approves the Central Goods and Services Tax (CGST) Bill and the Integrated Goods and Services Tax (IGST) Bill.

The Goods and Services Tax GST) Council, has approved the draft CGST Bill and the draft IGST Bill as vetted by the Union Law Ministry. This clears the deck for the Central Government to take these two Bills to the Parliament for their passage in the ongoing Budget Session.

Some of the main features of the two Bills, as finalized by the GST Council, are as follows:

1. A State-wise single registration for a taxpayer for filing returns, paying taxes, and to fulfil other compliance requirements. Most of the compliance requirements would be fulfilled online, thus leaving very little room for physical interface between the taxpayer and the tax official.
2. A taxpayer has to file one single return state-wise to report all his supplies, whether made within or outside the State or exported out of the country and pay the applicable taxes on them. Such taxes can be Central Goods and Services Tax (CGST), State Goods and Services Tax (SGST), Union Territory Goods and Services Tax (UTGST) and Integrated Goods and Services Tax (IGST).
3. A business entity with an annual turnover of up to Rs. 20 lakhs would not be required to take registration in the GST regime, unless he voluntarily chooses to do so to be a part of the input tax credit (ITC) chain. The annual turnover threshold in the Special Category States (as enumerated in Article 279A of the Constitution such as Arunachal Pradesh, Sikkim, Uttarakhand, Himachal Pradesh, Assam and the other States of the North-East) for not taking registration is Rs. 10 lakhs.
4. A business entity with turnover up to Rs. 50 lakhs can avail the benefit of a composition scheme under which it has to pay a much lower rate of tax and has to fulfil very minimal compliance requirements. The Composition Scheme is available for all traders, select manufacturing sectors and for restaurants in the services sector.
5. In order to prevent cascading of taxes, ITC would be admissible on all goods and services used in the course or furtherance of business, except on a few items listed in the Law.
6. In order to ensure that ITC can be used seamlessly for payment of taxes under the Central and the State Law, it has been provided that the ITC entitlement arising out of taxes paid under the Central Law can be cross-utilised for payment of taxes under the laws of the States or Union Territories. For example, a taxpayer can use the ITC accruing to him due to payment of IGST to discharge his tax liability of CGST / SGST / UTGST. Conversely, a taxpayer can use the ITC accruing to him on account of payment of CGST / SGST / UTGST, for payment of IGST. Such payments are to be made in a pre-defined order.
7. In the Services sector, the existing mechanism of Input Service Distributor (ISD) under the Service Tax law has been retained to allow the flow of ITC in respect of input services within a legal entity.
8. To prevent lock-in of capital of exporters, a provision has been made to refund, within seven days of filing the application for refund by an exporter, ninety percent of the claimed amount on a provisional basis.
9. In order to ensure a single administrative interface for taxpayers, a provision has been made to authorise officers of the tax administrations of the Centre and the States to exercise the powers conferred under all Acts.
10. An agriculturist, to the extent of supply of produce out of cultivation of land, would not be liable to take registration in the GST regime.
11. To provide certainty in tax matters, a provision has been made for an Advance Ruling Authority.
12. Exhaustive provisions for Appellate mechanism have been made.
13. Detailed transitional provisions have been provided to ensure migration of existing taxpayers and seamless transfer of unutilized ITC in the GST regime.
14. An anti-profiteering provision has been incorporated to ensure that the reduction of tax incidence is passed on to the consumers.
15. In order to mitigate any financial hardship being suffered by a taxpayer, Commissioner has been empowered to allow payment of taxes in instalments.

The remaining two Bills namely, State Goods and Services Tax (SGST) Bill and the Union territory Goods and Services Tax (UTGST) Bill, which would be almost a replica of the CGST Act, would be taken-up for approval after their legal vetting in the next meeting of GST Council scheduled on 16 March 2017.