Finance Minister Arun Jaitley on Thursday said that all GST laws including the State GST and Union Territory GST have been approved by the GST Council.
Here's are the highlights of what Finance Minister Arun Jaitley said at the press conference after GST Council meet:
- Cess on sin goods is 12 per cent, capped at 15 per cent.
- State GST and UT GST cleared by GST Council.
- Laws will be taken to cabinet and then to the parliament for approval
- Some marginal correction in remaining regulations will be required.
- Any supply made to SEZ will be zero rated.
- Commerce Ministry proposal on SEZ approved by GST Council
- Have kept a provision of ad valerom and specific duties for cigarette and tobacco
- Tobacco cess capped at 290 per cent ad valorem
- Cess capped at 15 percent for luxury cars and aerated drinks.
- Coal cess capped at Rs400/tonne
- Pan Masala cess capped at 135 per cent ad valorem
- Not decided to levy cess on bidis for now.
- July 1 is tentatively the roll out date for GST. Have sufficient buffer time till July 1
- Fitment of various commodities will be approved in the meeting of March 31
- Next meeting of Council to be held on March 31.
Last year in August, the Rajya Sabha cleared a bill that amended the Constitution to enable India's biggest tax reform - GST.
GST is a proposed system of indirect taxation merging most of the existing taxes into single system of taxation. It was introduced as The Constitution (One Hundred and First Amendment) Act 2016.
GST would be a comprehensive indirect tax on manufacture, sale and consumption of goods and services throughout India, to replace taxes levied by the central and state governments.
The GST is consumption based tax levied on the supply of Goods and Services which means it would be levied and collected at each stage of sale or purchase of goods or services based on the input tax credit method. Once it is in force, GST will replace at least 17 state and central taxes.