GST NEWS
Union Cabinet approves draft GST Bills
Union Cabinet approves draft GST Bills
Mar 20, 2017

The Cabinet on Monday cleared four supporting GST legislations, paving the way for their introduction in Parliament as early as today.

The four supporting legislations — the Compensation Law, the Central-GST (C-GST), Integrated-GST (I-GST) and Union Territory-GST (UT-GST) — would be introduced as Money Bill, sources said.

“The GST legislations have been cleared by the Cabinet. These would be introduced in Parliament this week, could be even today,” a source said.

The GST legislations were the only agenda in today’s meeting of the Union Cabinet, chaired by Prime Minister Narendra Modi.

Sources said the four legislations would be taken up for discussion together in Parliament. Once approved by Parliament, the states would start taking their SGST bill for discussion and passage in the respective state assemblies.

The GST Council, in its previous two meetings, had given approval to the four legislations as also the State-GST (S-GST) bill. While the S-GST has to be passed by each of the state legislative assemblies, the four other laws have to be approved by Parliament.

Passage of all the legislations would pave the way for introduction of Goods and Services Tax (GST) from July 1.

The government is hoping the C-GST, I-GST, UT-GST and the GST Compensation laws will be approved in the current session of Parliament and the S-GST by each of the state legislatures soon.

While a composite GST will be levied on sale of goods or rendering of services after the new indirect tax regime is rolled out, the revenue would be split between the Centre and the states in almost equal proportion.

This is because central taxes like excise and service tax and state levies like VAT will be subsumed in the GST.

While the C-GST will give powers to the Centre to levy GST on goods and services after Union levies like excise and service tax are subsumed, the I—GST is to be levied on inter-state supplies.

The S-GST will allow states to levy the tax after VAT and other state levies are subsumed in the GST. The UT-GST will also go to Parliament for approval.

The Council has already finalised a four-tier tax structure of 5, 12, 18 and 28 per cent, but the model GST law has kept the peak rate at 40 per cent (20 per cent to be levied by the Centre and an equal amount by the states) to obviate the need for approaching Parliament for any change in rates in future.

Similarly, the cess to be levied on top of peak rate on selected demerit goods like luxury cars for creation of a corpus that will be used for compensating states for any loss of revenue from GST implementation in the first five years, has been capped at 15 per cent.

Source :  The Hindu

Top Stories
FM simplifies GST refund claim process for businesses
Easing compliance burden for businesses, the Finance Ministry has said GST refunds can be claimed by...
Sep 6, 2018
336 Views
September last month to fix GST filing errors, claim credit for FY18
September is crucial for taxpayers under the new goods and services tax (GST) regime, as it will be ...
Sep 10, 2018
409 Views
Govt draws up plan to boost GST revenues
Alarmed by a nearly four-fold rise in GST compensation to states for June-July, the Finance Ministry...
Sep 10, 2018
258 Views
Companies not passing benefits of GST cut to customers, govt plans to hike penalty
Have the prices of regular use commodities come down after the government and the GST council slashe...
Sep 4, 2018
215 Views
GST returns: New system unlikely before next elections
The roll-out of the new simplified return-filing system for the goods and services tax (GST), which ...
Aug 31, 2018
340 Views
Articles on GST