Cabinet okays GST draft bills
Decks seem to be cleared for rollout of the goods and services tax (GST) from July 1 with cabinet on Monday clearing the four supporting bills for migration to the new indirect tax regime.
The four bills pertaining to levying of GST by Centre and Union Territories, inter-state sale of goods and compensating states for any revenue loss in the new regime would now be placed in Parliament for approval.
The states will pass state GST (SGST) bills in their respective assemblies before the biggest tax reform kicks in subsuming most indirect taxes, including central excise, VAT, service tax, entertainment tax and luxury tax.
Policymakers and experts claim the new tax regime, ba­s­ed on the principle of ‘one nation, one tax,’ would add up to 2 per cent to GDP.
“With the cabinet approval of these bills, the GST regime in India is in the final stages of culmination and GST law will most likely be implemented from July 1, 2017,” a finance ministry statement said.
The 4 GST related bills are central goods and services tax bill 2017, the integrated goods and services tax bill 2017, the UT goods and services tax bill 2017 and the goods and services tax (compensation to the states) bill 2017 (Compensation bill).