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.