India finalises bills to launch GST in July

  • India finalises bills to launch GST in July

India finalises bills to launch GST in July

The all-powerful Council discussed the GST legislation to be adopted by Union Territories.

The Centre is looking at GST rollout from July 1.

"No changes are to be made with regards to the peak rate on tax slabs, which is capped at 28 percent", he added. "Today, laws were put for discussion, GST council approved the laws".

However, Jaitley added that the "cap rate will be kept at a higher rate and applied rate will be 5, 12, 18, 28 per cent".

Added Rakesh Bhargava, Director, Taxmann, "Still the most hard task for the Council is to take decision on phase-wise implementation of GST since some States suggested GST implementation in two or three phases as GST Softwares are not ready and industry also need time for smooth implementation of GST".

The states and the Centre on Saturday decided on a 5% levy on dhabas and small restaurants under the goods and services tax (GST), while moving ahead with two key legislations, Central GST (CGST) and Integrated GST (IGST), with a final decision expected in a fortnight.

FM Jaitley said, "Final drafts of CGST and IGST laws were circulated to GST council".

Briefing media in New Delhi, Mr Jaitley said, the UT-GST and SGST laws will be approved in the next meeting on 16th of this month.

"Hopefully the laws would be before Parliament this session and subject to Parliament approving them, July 1 this year now optimistically looks like the possible date for GST implementation", he said.

The S-GST, which will allow states to levy the tax after VAT and other state levies are subsumed in GST, will have to be passed by each of the state Assemblies.

"The 4-tier rate structure that has been decided will hold for now".

Once the decks are cleared, the government will introduce the model GST law, which provides a common draft of CGST law, SGST law, IGST law, UTGST law and Compensation Law, in Parliament in the second half of the Budget Session beginning next week.

The central and state officials will soon start the exercise to determine which goods and services should fall in which tax bracket and the same will be taken to the council for approval.