The Union Cabinet chaired by Prime Minister Narendra Modi has approved the four Goods and Services Tax (GST) bills – Central GST (CGST), Integrated GST (IGST), Union Territory GST (UTGST) and the compensation bills. The bills were approved by the GST Council after thorough, clause by clause, discussion over 12 meetings 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 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 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. UTGST is akin to States GST (SGST) which shall be levied and collected by the states/union territories on intra-state supply of goods or services.
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.
The GST council headed by Union finance minister Arun Jaitley had cleared the SGST and UTGST draft bills in the 12th Council meeting held on March 16, while the CGST and IGST were approved during the meeting held on March 4-5.
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 July 1 as the date of commencement of GST. Jaitley in his Budget Speech had mentioned that country-wide outreach efforts will be made to explain the provisions of GST to trade and industry. (KD)
Source:Fibre2Fashion News Desk – India