New Delhi: Union Cabinet on Monday approved four supporting GST legislations which will now enable them to be introduced in the current Budget session of the Parliament so as to roll out the new indirect tax from July 1.
The four legislations approved by cabinet are Central GST, Integrated GST, Union Territory GST and Compensation bill.
Now states cabinet will need to approve State GST and then passed by respective state assemblies to bring the new one-nation-one-tax regime by merging central taxes like excise duty and service tax and state levies like VAT.
The GST legislations were the only agenda in the meeting of the Union Cabinet. GST Council has already approved four-tier tax slabs of 5, 12, 18 and 28 per cent plus an additional cess on demerit goods like luxury cars, aerated drinks and tobacco products.
In April 2017, the GST Council will decide which commodity and service will be taxed at what rate.
Now among the other pending agenda for the GST council is to approve four rules — composition, valuation, input tax credit and transitions. For this the next meeting of the GST has been called on March 31.
Central GST bill makes provisions for levy and collection of tax on intra-state supply of goods or services or 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 (101th Amendment) Act, 2016....