The Union Cabinet approved four legislations required to implement the goods and services tax (GST), allowing for their introduction in parliament. The four GST related bills are 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 government hopes to complete the legislative work for this biggest reform of the indirect tax regime in the ongoing budget session so that it can be rolled out from July 1. The bills were approved last week by the GST Council, a body of centre and states empowered to take decisions in respect of GST. The bills are likely to be introduced as money bill. 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. All state assemblies will have to separately approve the state GST legislation before this one-nation one-tax regime can be rolled out.
Image source: Online News Update