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Cabinet likely to consider GST supplementary legislation today

GST will be levied on sale of goods or rendering of services after new tax regime is rolled out

Press Trust of India  |  New Delhi 

GST
GST

The Cabinet may on Monday take up for approval the supporting legislations, which will then be introduced in Parliament as the government sprints to meet the July 1 target date for rollout of the new indirect tax regime.

A set of four supporting legislations -- the Compensation Law, the Central-or C-GST, Integrated-or I-and Union Territory-or UT--- are likely to together go to the Cabinet for approval.



Sources said the Cabinet meeting has been called for Monday morning and the agenda list may not be very long.

The Council, in its previous two meetings, had given approval to the four legislations as also the State-(S-GST) bill. While the S-has to be passed by each of the state legislative assemblies, the other four laws have to be approved by Parliament.

Once approved, levy of Goods and Services Tax (GST) will get legal backing.

The government is hoping the C-GST, I-GST, UT-and the will be approved in the current session of Parliament and the S-by each of the state legislatures soon to help roll out the new indirect tax regime from July 1.

While a composite will be levied on sale of goods or rendering of services after the new indirect tax regime is rolled out, the revenue would be split between Centre and states in almost equal proportion.

This because central taxes like excise and service tax and state levies like will be subsumed in the

While the C-will give powers to the Centre to levy on goods and services after Union levies like excise and service tax are subsumed, the I-is to be levied on inter-state supplies.

The S-will allow states to levy the tax after and other state levies are subsumed in the The UT-will also go to Parliament for approval.

Sources said the Council has already finalised a four-tier tax structure of 5, 12, 18 and 28 per cent, but the model law has kept the peak rate at 40 per cent (20 per cent to be levied by the Centre and an equal amount by states) to obviate the need for approaching Parliament for any change in rates in future.

Similarly, the cess to be levied on top of peak rate on selected demerit goods like luxury cars for creation of a corpus that will be used for compensating states for any loss of revenue from implementation in the first five years, has been capped at 15 per cent.

Sources said the government may attempt for all the four laws to be taken up for approval in Parliament together during the ongoing Budget session that ends on April 12.

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Cabinet likely to consider GST supplementary legislation today

GST will be levied on sale of goods or rendering of services after new tax regime is rolled out

GST will be levied on sale of goods or rendering of services after new tax regime is rolled out The Cabinet may on Monday take up for approval the supporting legislations, which will then be introduced in Parliament as the government sprints to meet the July 1 target date for rollout of the new indirect tax regime.

A set of four supporting legislations -- the Compensation Law, the Central-or C-GST, Integrated-or I-and Union Territory-or UT--- are likely to together go to the Cabinet for approval.

Sources said the Cabinet meeting has been called for Monday morning and the agenda list may not be very long.

The Council, in its previous two meetings, had given approval to the four legislations as also the State-(S-GST) bill. While the S-has to be passed by each of the state legislative assemblies, the other four laws have to be approved by Parliament.

Once approved, levy of Goods and Services Tax (GST) will get legal backing.

The government is hoping the C-GST, I-GST, UT-and the will be approved in the current session of Parliament and the S-by each of the state legislatures soon to help roll out the new indirect tax regime from July 1.

While a composite will be levied on sale of goods or rendering of services after the new indirect tax regime is rolled out, the revenue would be split between Centre and states in almost equal proportion.

This because central taxes like excise and service tax and state levies like will be subsumed in the

While the C-will give powers to the Centre to levy on goods and services after Union levies like excise and service tax are subsumed, the I-is to be levied on inter-state supplies.

The S-will allow states to levy the tax after and other state levies are subsumed in the The UT-will also go to Parliament for approval.

Sources said the Council has already finalised a four-tier tax structure of 5, 12, 18 and 28 per cent, but the model law has kept the peak rate at 40 per cent (20 per cent to be levied by the Centre and an equal amount by states) to obviate the need for approaching Parliament for any change in rates in future.

Similarly, the cess to be levied on top of peak rate on selected demerit goods like luxury cars for creation of a corpus that will be used for compensating states for any loss of revenue from implementation in the first five years, has been capped at 15 per cent.

Sources said the government may attempt for all the four laws to be taken up for approval in Parliament together during the ongoing Budget session that ends on April 12.
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Business Standard
177 22

Cabinet likely to consider GST supplementary legislation today

GST will be levied on sale of goods or rendering of services after new tax regime is rolled out

The Cabinet may on Monday take up for approval the supporting legislations, which will then be introduced in Parliament as the government sprints to meet the July 1 target date for rollout of the new indirect tax regime.

A set of four supporting legislations -- the Compensation Law, the Central-or C-GST, Integrated-or I-and Union Territory-or UT--- are likely to together go to the Cabinet for approval.

Sources said the Cabinet meeting has been called for Monday morning and the agenda list may not be very long.

The Council, in its previous two meetings, had given approval to the four legislations as also the State-(S-GST) bill. While the S-has to be passed by each of the state legislative assemblies, the other four laws have to be approved by Parliament.

Once approved, levy of Goods and Services Tax (GST) will get legal backing.

The government is hoping the C-GST, I-GST, UT-and the will be approved in the current session of Parliament and the S-by each of the state legislatures soon to help roll out the new indirect tax regime from July 1.

While a composite will be levied on sale of goods or rendering of services after the new indirect tax regime is rolled out, the revenue would be split between Centre and states in almost equal proportion.

This because central taxes like excise and service tax and state levies like will be subsumed in the

While the C-will give powers to the Centre to levy on goods and services after Union levies like excise and service tax are subsumed, the I-is to be levied on inter-state supplies.

The S-will allow states to levy the tax after and other state levies are subsumed in the The UT-will also go to Parliament for approval.

Sources said the Council has already finalised a four-tier tax structure of 5, 12, 18 and 28 per cent, but the model law has kept the peak rate at 40 per cent (20 per cent to be levied by the Centre and an equal amount by states) to obviate the need for approaching Parliament for any change in rates in future.

Similarly, the cess to be levied on top of peak rate on selected demerit goods like luxury cars for creation of a corpus that will be used for compensating states for any loss of revenue from implementation in the first five years, has been capped at 15 per cent.

Sources said the government may attempt for all the four laws to be taken up for approval in Parliament together during the ongoing Budget session that ends on April 12.

image
Business Standard
177 22