Lok Sabha passed the 4 Goods and Services Tax (GST) supplementary bills to make way for country-wide rollout of GST on 1st July.

Lok Sabha passed the 4 Goods and Services Tax (GST) supplementary bills

Lok Sabha passed the 4 Goods and Services Tax (GST) supplementary bills to make way for country-wide rollout of GST on 1st July.

These supplementary bills are:

  1. Central Goods and Services Tax (GST) Bill 2017,
  2. Integrated GST Bill 2017,
  3. The Goods and Services Tax (Compensation to states) Bill 2017 and
  4. Union Territory GST Bill 2017

Now, the State GST legislation has to be passed by the legislative assemblies of all states and Union Territories with legislatures

The rates committee of the GST Council, constituted under the 101st Constitutional Amendment, will recommend the tax rates with respect to CGST, IGST and UTGST. The tax rates for CGST will not exceed 20%. The tax rate of IGST will not exceed 40%. In addition, a cess will be levied on certain goods and services to compensate states for revenue loss.

It also has to decide on the fitment of all applicable goods and services in the relevant tax slabs.

The GST Council has recommended a four-tier tax structure — 5, 12, 18 and 28 per cent. On top of the highest slab, a cess will be imposed on luxury and demerit goods to compensate the states for revenue loss in the first five years of GST implementation.

Food articles which are not taxed will continue to be zero rated under the GST.

The Council has two-thirds voting by the States and one-third by the Centre. The GST Council has been given the power to only make a recommendation regarding the model law.

Provisions of these four bills are:

Central Goods and Services Tax (GST) Bill 2017:  

The centre will levy CGST on the supply of goods and services within the boundary of a state (intrastate).  Supply include sale, transfer and lease made for a consideration to further a business. Read more

Integrated GST Bill 2017:

The centre will levy IGST in the case of (i) inter-state supply of goods and services, (ii) imports and exports, and (iii) supplies to and from special economic zones.  Supply includes sale, transfer, exchange and lease made for a consideration to further a business.  In addition, IGST will be levied on any supply which will not fall under the purview of the Central and State GST Acts. Read more

The Goods and Services Tax (Compensation to states) Bill 2017:

The Bill provides for compensation to states for any loss in revenue due to the implementation of GST for a period of five years as per section 18 of the Constitution (One Hundred and First Amendment) Act, 2016. Read more

Union Territory GST Bill 2017:

The Bill provides for the levy of the Union Territory Goods and Services Tax (UTGST) without legislature. The centre will levy UTGST on the supply of goods and services within the boundary of a union territory (intra-UT).  Read more
Source:

 


How helpful is this news for you? Please do share your feedback in comment below.

You can also share this news with your study group.

 

To get the similar posts in future you can like my Facebook Page.

You can subscribe to get the post in your mail inbox. (Our aim is to help you succeed in your examination and not to spam or sell your information.)

Published by

essentialclasses

Tutorials to beat the competitive examination.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s