Press Esc to close

Cabinet clears GST supplementary legislations

New Delhi, Mar 20, 2017, (PTI) 11:54 IST
While the C-GST will give powers to the Centre to levy GST on goods and services after Union levies like excise and service tax are subsumed, the I-GST is to be levied on inter-state supplies.

While the C-GST will give powers to the Centre to levy GST on goods and services after Union levies like excise and service tax are subsumed, the I-GST is to be levied on inter-state supplies.

The Cabinet today cleared four supporting GST legislations, paving the way for their introduction in Parliament as early as today.

The four supporting legislations -- the Compensation Law, the Central-GST (C-GST), Integrated-GST (I-GST) and Union Territory-GST (UT-GST)-- would be introduced as Money Bill, sources said.

"The GST legislations have been cleared by the Cabinet. These would be introduced in Parliament this week, could be even today," a source said. The GST legislations were the only agenda in today's meeting of the Union Cabinet, chaired by Prime Minister Narendra Modi.

Sources said the four legislations would be taken up for discussion together in Parliament. Once approved by Parliament, the states would start taking their SGST bill for discussion and passage in the respective state assemblies.

The GST Council, in its previous two meetings, had given approval to the four legislations as also the State-GST (S-GST) bill. While the S-GST has to be passed by each of the state legislative assemblies, the four other laws have to be approved by Parliament. Passage of all the legislations would pave the way for introduction of Goods and Services Tax (GST) from July 1.

The government is hoping the C-GST, I-GST, UT-GST and the GST Compensation laws will be approved in the current session of Parliament and the S-GST by each of the state legislatures soon.

While a composite GST will be levied on sale of goods or rendering of services after the new indirect tax regime is rolled out, the revenue would be split between the Centre and the states in almost equal proportion. This is because central taxes like excise and service tax and state levies like VAT will be subsumed in the GST.

While the C-GST will give powers to the Centre to levy GST on goods and services after Union levies like excise and service tax are subsumed, the I-GST is to be levied on inter-state supplies.

The S-GST will allow states to levy the tax after VAT and other state levies are subsumed in the GST. The UT-GST will also go to Parliament for approval. The Council has already finalised a four-tier tax structure of 5, 12, 18 and 28 per cent, but the model GST law has kept the peak rate at 40 per cent (20 per cent to be levied by the Centre and an equal amount by the states) to obviate the need for approaching Parliament for any change in rates in future.

Similarly, the cess to be levied on top of peak rate on selected demerit goods like luxury cars for creation of a corpus that will be used for compensating states for any loss of revenue from GST implementation in the first five years, has been capped at 15 per cent.

Go to Top

More from this section
Most trending stories
Photo Gallery
Deepika Padukone with child artists at the promotion of film Padmavati...

Deepika Padukone with child artists at the promotion of film Padmavati...

Shilpa Shetty Kundra and Deepika Padukone at the promotion of film Padmavati...

Shilpa Shetty Kundra and Deepika Padukone at the promotion of film Padmavati...

Shilpa Shetty Kundra with husband Raj Kundra during an event...

Shilpa Shetty Kundra with husband Raj Kundra during an event...

Shikhar Dhawan and L Rahul during Day 4 of the first cricket test math against Sri Lanka...

Shikhar Dhawan and L Rahul during Day 4 of the first cricket test math against Sri Lanka...

Devotees offer prayers to Lord Ayyappa at Bindapur...

Devotees offer prayers to Lord Ayyappa at Bindapur...

Devotees from Mymnmar going to offer huge robe to Lord Buddha at Bodhgaya Mahabodhi temple...

Devotees from Mymnmar going to offer huge robe to Lord Buddha at Bodhgaya Mahabodhi temple...

Contingents of various countries taking part in march past during the opening ceremony of AIBA....

Contingents of various countries taking part in march past during the opening ceremony of AIBA....

Music composer A R Rahman performs at The Sufi Route concert at Qutub Minar....

Music composer A R Rahman performs at The Sufi Route concert at Qutub Minar....

An army jawan performs a fire stunt during a 'Know Your Army' programme...

An army jawan performs a fire stunt during a 'Know Your Army' programme...

Players of Chennaiyin FC and FC Goa vie for the ball during an ISL match...

Players of Chennaiyin FC and FC Goa vie for the ball during an ISL match...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523
Powered by Yodasoft Technologies Pvt. Ltd.