1. Cabinet okays 4 GST Bills

Cabinet okays 4 GST Bills

The Cabinet on Monday cleared four GST-related Bills, paving the way for their introduction in Parliament, as early as Tuesday.

By: | New Delhi | Published: March 21, 2017 7:08 AM
The GST will lead to a nationwide market, removal of cascading of taxes and broadening of the tax base.

The Cabinet on Monday cleared four GST-related Bills, paving the way for their introduction in Parliament, as early as Tuesday. The four drafts are the Compensation Law, the Central-GST (C-GST), Integrated-GST (I-GST) and Union Territory-GST (UT-GST) — and these would likely be introduced in the House as Money Bills.

Last week, the GST Council approved five draft laws, including the above four and the state GST (S-GST) Bill, which needs to be approved by all state assemblies (likely by April-end). Approval of the Bills by Parliament and state assemblies will complete the legislative process for rollout of the comprehensive indirect tax on value addition. The plan is to usher in the new tax regime by July 1.

Harishanker Subramaniam, national leader — indirect tax, EY India, said: “The focus now shifts to key GST rules like valuation, input tax credit, transition etc along with fixation of rates of goods and services into the decided tax slabs. July 1, 2017 looks real for GST implementation.”

The GST will lead to a nationwide market, removal of cascading of taxes and broadening of the tax base. It will subsume assorted levies, including the central excise duty and its equivalents on imports, service tax and state VAT, but exclude the basic customs duty.

The GST Council has already approved four-tier tax slabs of 5%, 12%, 18% and 28% plus an additional cess on demerit goods like luxury cars, aerated drinks and tobacco products. The work on putting various goods and services in different slabs is slated to begin next month. The GST Council has had 13 meetings so far with the next one to be held on March 31.

Finance minister Arun Jaitley had said after the last meeting that the council would require one more major meeting to approve fitment of commodities into the various slabs.

  1. K
    K.Ramachandran
    Mar 21, 2017 at 6:07 am
    Sir,With a collection of Rs. 13,000 crores in Service Tax and that being 6% of total service tax revenue, the general insurance industry needs to be heard. From a procedures viewpoint all, the Head Offices of the insurance companies be registered for GST and the Service Tax collections across the country be based on Head Office administered premium pricing, deemed IGST for purpose of input credit and revenue allocation. This could be a departure from the rules being enunciated.In respect of Category of Policyholders the rates to be proposed and implemented should be -1. Jan Dhan level - NIL GST Rate; 2. Personal (Individual) - 5% GST Rate, and 3. Commercial - 12% GST Rate. There is one more issue which merits consideration. The Service Tax on reinsurance premium ceded is absorbed by the ceding insurers in India as they are unable to collect the same from overseas reinsurers. In this regard even reinsurance brokers in India do not take responsibility. This could be reviewed for incidence and a clear stand taken by the GST Authority.
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