With the Goods and Service Tax (GST) Council today approving the remaining two draft bills - UTGST (Union Territory GST) and SGST (state GST) - all the five enabling draft bills stand approved to enable a likely rollout of the new indirect tax regime from July 1 this year.
Finance Minister Arun Jaitley today said that the supporting GST laws will now be taken to the Union Cabinet and then to Parliament for approval. He said the Council will now meet on March 31 for the framing of the rules for the ambitious Goods and Service Tax regime.
The UTGST (Union Territory GST) and sGST (state GST) enables a likely rollout of the new indirect tax regime from July 1 this year.
"The tax rates for various goods and services will be taken up after the framing of rules. Hopefully GST will be implemented from July 1," Jaitley said.
The cess on demerit goods has been capped at 15 per cent, Jaitley said after he emerged from the GST Council meeting in New Delhi.
The other three draft laws -- central cGST (cGST), integrated GST (iGST) and compensation draft laws -- have already been approved by the Council.
sGST DRAFT LAW NEEDS APPROVAL
Meanwhile, the sGST draft law will have to be approved by the legislative assemblies of states and union territories (Delhi, Puducherry).
The UTGST draft law is for the union territories like Andaman and Nicobar Islands, Lakshadweep, Daman and Diu and Dadra and Nagar Haveli, which do not have legislative assemblies.
With the approval of the five draft laws, the legislative action of the GST Council will be over, after which there will be another meeting for fitment of the goods and services in the tax slabs - 5 per cent, 12 per cent, 18 per cent, 28 per cent.
The Council has approved raising the cGST, sGST peak tax rate from 14 per cent to 20 per cent each, amounting to a peak rate of 40 per cent, though Revenue Secretary Hasmukh Adhia has assured that the maximum ceiling is only for future contingencies.