Four GST bills approved
Cabinet approves four GST Bills
The Union Cabinet chaired by the Prime Minister Shri
Narendra Modi has approved the following four GST related bills:
1.
The Central Goods and Services Tax Bill
2017 (The CGST Bill)
2.
The Integrated Goods and Services Tax
Bill 2017 (The IGST Bill)
3.
The Union Territory Goods and Services
Tax Bill 2017 (The UTGST Bill)
4.
The Goods and Services Tax (Compensation
to the States) Bill 2017 (The Compensation Bill)
The above four Bills have been earlier approved by
the GST Council after thorough, clause by clause, discussion over 12 meetings
of the Council held in the last six months.
The CGST Bill makes provisions for levy and
collection of tax on intra-state supply of goods or services for 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 (One Hundred and First Amendment) Act, 2016.
Background:
The Government is committed to early
introduction of GST, one of the biggest reforms, in the country as early as
possible. GST Council has decided 1st July as the date of
commencement of GST. The Finance Minister in his Budget Speech has mentioned
that country-wide outreach efforts will be made to explain the provisions of
GST to Trade and Industry.
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The
Union Cabinet chaired by the Prime Minister Shri Narendra Modi approves
the four Goods and Services Tax (GST) related bills today
The GST law will be the biggest reform in the area of Indirect Taxes in the history of independent India
The GST law will be the biggest reform in the area of Indirect Taxes in the history of independent India
The
Union Cabinet chaired by the Prime Minister Shri Narendra Modi today approved
the following four Goods and Services Tax (GST) related bills:
1.
The Central Goods and Services Tax Bill 2017 (The CGST Bill)
2.
The Integrated Goods and Services Tax Bill 2017 (The IGST Bill)
3.
The Union Territory Goods and Services Tax Bill 2017 (The UTGST Bill)
4.
The Goods and Services Tax (Compensation to the States) Bill 2017 (The
Compensation Bill)
The
passage of these four GST related bills will pave the way for the biggest
reform in the area of Indirect Taxes in the history of independent India. The
Union Government has taken up the implementation of GST with utmost priority
and has passed the legislations on a fast track basis as it was pending for
over a decade. With the Cabinet approval of these four bills, the GST regime in
India is in the final stages of culmination and the GST law will most likely be
implemented from 01st July, 2017. The above four Bills have been
earlier approved by the GST Council after thorough, clause by clause,
discussion over 12 meetings of the Council held in the last six months.
By
amalgamating a large number of Central and State taxes into a single tax, it
would mitigate cascading or double taxation in a major way and pave the way for
a common national market. The Goods and Services Tax will thus help in the
realization of the objective of “One Nation, One Tax” and improve the Ease of
Doing Business climate in the country. It will also indirectly benefit the
common man by reducing the tax burden especially on the daily consumer items of
the common man.
Introduction
of GST would also make Indian products competitive in the domestic and international
markets. Studies show that this would have a boosting impact on economic
growth. It is expected that the implementation of the Goods and Services Tax
law will lead to an increase in Gross Domestic Product (GDP) of the country by
1-2%. This in turn will lead to the creation of more employment and increase in
productivity.
The
GST regime will bring in more transparency and efficiency with the minimization
of human interface in the tax administration in the country. The GST regime is
also likely to lead to a reduction in tax evasion as a result of the
computerization of the taxation process. This tax, because of its transparent
and self-policing character, would be easier to administer. This will in turn
lead to increase in revenue collection for the Centre and the States.
The
CGST Bill makes provisions for levy and collection of tax on intra-state supply
of goods or services for 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
(One Hundred and First Amendment) Act, 2016.
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