Cabinet approves four GST related bills

Cabinet approves four GST related billsUpdated on : 20-03-2017 10:11 PM
The Union Cabinet on Monday approved the GST supplementary and compensation bills. With this the govt. has reached the final stages before the roll out of the massive indirect tax reform, targeted for July 1.


The bills will be sent to parliament later this week, while the state GST bill will be passed by each state legislature.

The Goods and Services Tax is a comprehensive uniform indirect tax on goods and services across a country.

The Union Cabinet approved four supporting legislations that would now be sent to Parliament and are likely to be presented in the Lok Sabha as money bills later this week.

These four supporting legislations are Compensation Law, Central-GST, Integrated-GST and Union Territory-GST.

The Compensation law was cleared by the GST council at its Udaipur meeting in February. The states will get full compensation for the first five years for any shortfall in revenue, which would be calculated at 14% annual growth from 2015-16 base year. The compensation will be funded through various cesses.

The Central GST would replace Central Excise Duty, Service Tax, Additional Duties of Excise & Customs, Special Additional Duty of Customs, and cesses and surcharges on supply of goods and services.

The IGST relates to taxation of inter-state transfer of goods and will provide for cross empowerment of state and central officers.

State Taxes GST would replace VAT, Central Sales Tax, Purchase Tax, Entry Tax, Entertainment Tax, taxes on advertisements, lotteries, betting and gambling, and state cesses and surcharges.

A four-tier rate structure has been cleared by the GST Council, but which commodities fit in these slabs would be done after March 31. The slabs are 5%, 12%, 18% and 28%. Items of daily needs will be taxed at 5% while luxury items will be taxed at the higher end.

GST is also expected to disincentivize tax evasion, lower tax rates, and make business operations easier.

(SA - @20/03)

1
2

Indian economy remains a bright spot in glo...

Indian economy remains a bright spot in glo...

Updated on : 24-02-2017 07:28 PM
The International Monetary Fund has said the Indian economy is growing strongly and remains a bright spot in the global landscape. It said growth is expected at 6.6 percent in....
RBI: Inflation to remain within target rate t...

RBI: Inflation to remain within target rate t...

Updated on : 08-02-2017 09:46 PM
Reserve Bank keeps lending rate unchanged at 6.25 %. Growth is expected to recover sharply in 2017-18.
Current Affairs
Bangladesh celebrates its 46th Independence Day

Prime Minister Narendra Modi congratulated people of Bangladesh on their Independence Day. He said that Bangladesh is a strong partner and a true friend.

Updated on : 27-03-2017 08:38 AM
Weather
 

DD News,Copernicus Marg
New Delhi-110001
Phone No. :
Designed and maintained by National Informatics Centre(NIC)

Since December 2013
Total Visitors:-46556955
© Copyright DDNews 2013, All Rights Reserved.