The Union Cabinet headed by Prime Minister Narendra Modi today approved four supporting Goods and Services Tax (GST) bills, which will now be introduced in Parliament during the ongoing Budget session.
The four supporting GST legislations include Central GST or C-GST, the Integrated GST (I-GST), and the Union Territory GST (UT-GST), and the Compensation to the States Law. The four bills were earlier approved by the GST Council after a thorough clause by clause discussion over 12 meetings held in the last six months.
WHAT IS GST?
The C-GST Bill makes provisions for levy and collection of tax on intra-state supply of goods or services for both by the Central Government. On the other hand, the I-GST Bill makes provisions for levy and collection of tax on inter-state supply of goods or services or both by the Central Government.
The UT-GST Bill makes provisions for levy on collection on tax on intra-UT supply of goods and services in the Union Territories without legislature. The Union Territory GST is akin to States Goods and Services Tax (SGST) which shall be levied and collected by the States/Union Territories on intra-state supply of goods or services or both.
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.
These bills will help in the rollout of the much-awaited indirect tax regime, which the Centre plans to do from July 1 this year.
MODI BATS FOR GST AT INDIA TODAY CONCLAVE
On Saturday, Prime Minister Narendra Modi had said people should make efforts to discuss and understand the new indirect tax regime.
"I want the entire country to discuss and try to understand GST," Modi said here at the India Today Conclave through video conferencing. "In GST, the entire process has been reached by consensus; the states have taken ownership. It is an example of cooperative federalism," he added.
Meanwhile, a number of Opposition parties said they want the GST Bill to become a reality, but the green signal will be given in the Rajya Sabha only after seeing the blueprints of the four supporting bills.
Congress MP PL Punia said, "We have to see the blueprint of these bills. We also want GST to pass as it is our own bill. But there were certain objections in the past too. So, we have to go through these bills first." JD-U's Sharad Yadav, "It is a good move. The GST is long due and we want GST to get passed at the earliest."