After the Union cabinet approved four Goods and Services Tax (GST) legislation on Monday, Prime Minister Narendra Modi said the move will give a boost to the government’s reform agenda. “Crucial bills relating to GST have been approved by the Cabinet, giving a boost to our reform agenda,” tweeted Modi.
Crucial bills relating to GST have been approved by the Cabinet, giving a boost to our reform agenda. https://t.co/L9iKaRFkHv
— Narendra Modi (@narendramodi) March 20, 2017
Paving the way for their introduction in Parliament, the Union Cabinet chaired by Prime Minister has approved the four GST related bills, which are 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). These were earlier approved by the GST council after thorough, clause by clause, discussion over 12 meetings of the Council held in the last six months:
With the GST council clearing the state and union territory laws, the GST roll out on July 1 looks possible.
Once this bill gets approved by Parliament, the states would start taking their SGST bill for discussion and passage in the respective state assemblies.
A composite GST will be levied on sale of goods or rendering of services after the new indirect tax regime is rolled out, and the revenue would be split between the Centre and the states in almost equal proportion. The reason for this is that the central taxes like excise and service tax and state levies like VAT will be subsumed in the GST.