Moving one step closer towards implementation of Goods and Services Tax (GST), union cabinet today approved 4 supplementary bills of GST. This is in order to introduce the bill in parliament this week, so that all the possible formalities are completed within time to implement it from July 1.
Further formalities required to implement GST include an approval by parliament and state assemblies. The proposed GST aims to have a single tax structure by merging various taxes under central and state governments. Currently, central government controls taxes like excise duty and service tax whereas state government controls VAT.
Four tier tax slab of 5, 12, 18 and 28 percent has already been approved by the GST council. There is a proposal of having extra cess on goods like imported luxury cars, tobacco products and aerated drinks. From April, the GST council will start putting various goods and services under the 4 decided slabs.
The announcement of the approval of bills was made public by an official statement which stated that the cabinet chaired by prime minister Narendra Modi has cleared 4 bills related to GST in 2 meetings separately held this month. The bills approved include he Central Goods and Services Tax Bill 2017 (The CGST Bill), The Integrated Goods and Services Tax Bill 2017 (The IGST Bill), The Union Territory Goods and Services Tax Bill 2017 (The UTGST Bill) and The Goods and Services Tax (Compensation to the States) Bill 2017 (The Compensation Bill).
GST council has decided July 1st as the date to start implementation of GST. Before that, the bill needs to be approved by the parliament and for the same, it will be presented as a money bill within this week.