The implementation of the much contended Goods and Service tax (GST) has moved a step close to reality. The GST Council which met on Saturday at Vigyan Bhavan have finally cleared the Central GST and Integrated GST law.
While the agenda of the meet was to clear these two laws before the second half of the Budget Session on March 9, State GST and Union Territory GST was not to be discussed as the tax reform lies pending with the Law Commission for legal framing.
The draft compensation bill has already been approved in the Council's February 18 meeting. The four crucial bills form the enabling laws under the GST constitutional amendment, and the passage of these bills would pave way for the implementation of India's biggest indirect tax reform.
On Thursday, the GST Council proposed to raise the peak tax rate to 20%, from the current 14%. The revised draft of model GST law which was made public in November 2016, provides for a maximum rate of tax under the new regime at 14% (14% central GST and an equal state GST, taking the total to 28%). Officials said this "14%" would now be changed to say the rate will not exceed "20%". The GST Council, headed by Finance Minister Arun Jaitley and comprising representatives of all states agreed to keep the upper band of the rate in the law at 20%.
After Economic Affairs Secretary Shaktikanta Das, last week, stated that the roll-out of GST would not be later than July 1, Prakash Kumar, CEO of GST Network (GSTN) on Thursday said that he is ready to roll out GST from July 1.
Source :  Daily News & Analysis