The Union Cabinet chaired by the Prime Minister Shri
Narendra Modi has approved the following four GST related bills:
1.
The Central Goods and Services Tax Bill
2017 (The CGST Bill)
2.
The Integrated Goods and Services Tax
Bill 2017 (The IGST Bill)
3.
The Union Territory Goods and Services
Tax Bill 2017 (The UTGST Bill)
4.
The Goods and Services Tax (Compensation
to the States) Bill 2017 (The Compensation Bill)
The above four Bills have been earlier approved by
the GST Council after thorough, clause by clause, discussion over 12 meetings
of the Council held in the last six months.
The CGST 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, IGST Bill makes provisions for levy
and collection of tax on inter-state supply of goods or services or both
by the Central Government.
The UTGST Bill makes provisions for levy on
collection of tax on intra-UT supply of goods and
services in the Union Territories without legislature. 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.
Background:
The Government is committed to early
introduction of GST, one of the biggest reforms, in the country as early as
possible. GST Council has decided 1st July as the date of
commencement of GST. The Finance Minister in his Budget Speech has mentioned
that country-wide outreach efforts will be made to explain the provisions of
GST to Trade and Industry.
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AKT/VBA/SH