“GST is the biggest reform in India. Hopefully, GST will be implemented by July 1. GST Bills will hopefully be cleared in Parliament,” Jaitley said here at the 23rd Conference of Auditors General of Commonwealth Nations hosted by the Comptroller and Auditor General (CAG) of India.
The Union Cabinet earlier this week approved four GST related bills — The 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).
The bills are likely to be introduced as money bill, ensuring they do not get stalled in the Rajya Sabha where the NDA government does not have the numbers.
The GST Council has approved a four-tier tax slabs of 5, 12, 18 and 28% within an overall cap of 40%. In addition, a cess will be levied on demerit goods like luxury cars, aerated drinks and tobacco products.
The CGST Bill sets the tax regime for the levy of GST on intra-state supply of goods or services or both by the central government. IGST Bill deals levy of GST on inter-state supply of goods or services or both by the central government.
Similarly, the UTGST Bill provides for levy of GST on intra-UT supply of goods and services in the Union Territories without legislature. The Compensation Bill provides for compensation to the states for loss of revenue due to GST for a period of five years.
All state assemblies will have to separately approve the state GST legislation before this one-nation one-tax regime can be rolled out.