Coming to the final lag of preparations for the implementation of GST, union finance minister, Arun Jaitley today tabled 4 GST bills in Parliament. The 4 bills related to Goods and Services Tax, provide a maximum tax slab of 40% and with that, the bills also have provision of anti profiteering authority and prison for anyone who evades taxes.
The presentation of the bills in parliament has made sure that India is on verge of becoming a nation with one tax, removing the various levels and types of taxes levied by state and central governments. GST is also termed as the biggest tax reform after the independence by the central government.
Among the 4 bills introduced in the parliament, the first bill CGST (Central Goods and Services Tax) will aim to amalgamate all the taxes and duties imposed by the central government. These taxes include sales tax, service tax, excise duty, additional custom duty, various cess and surcharge. It provides a maximum tax rate of 20 percent. A mirror bill of the same , named State – GST will follow a similar procedure for all the taxes levied by states. Before implementation, this bill will have to be approved by state assemblies.
The second bill, named as Union Terroary GST will handle taxes in union territories of Chandigarh, Lakshadweep, Dadra and Nagar Haveli, Daman and Diu, Pondocherry, Delhi etc.
The third bill, Integrated Goods and Services tax, will take care of taxes on inter state exchange of goods and services.
The fourth bill, named as GST (Compensation to states) bill will take care of the steps needed in order to compensate states for the lost revenue from introduction of GST. This amount will be compensated to states for the first 5 years.
The tax slabs have been slotted at 5, 12, 18 and 28 percent, however, for unavoidable financial emergencies, it can go upto 40 percent. Also, GST will not be applicable in Jammu and Kashmir.