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Cabinet approves four draft GST bills; to be introduced in Parliament this week

The Financial Express logo The Financial Express 20-03-2017 FE Online

The Cabinet on Monday approved four supporting GST legislations - Compensation Law, the Central-GST (C-GST), Integrated-GST (I-GST) and Union Territory-GST (UT-GST), a government official said. The bills are likely to be taken up by the parliament this week as Prime Minister Narendra Modi rushes to roll out the new law, after years of delays.

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 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 other four laws have to be approved by Parliament. Once approved, levy of Goods and Services Tax (GST) will get legal backing.

#BreakingNews| Cabinet clears 4 #GST bills- #CGST, #UTGST, #IGST & Compensation Bills. @TimsyJaipuria with the details!

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 CNBC-TV18 News (@CNBCTV18News) March 20, 2017

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 Centre and states in almost equal proportion. This because central taxes like excise and service tax and state levies like VAT will be subsumed in the GST.

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