You are here: Home » Economy & Policy » News
Business Standard

Council mostly agrees on CGST, IGST provisions; GST set for July 1 rollout

Amit Mitra said that as many as 26 changes sought by states have been accepted by the Centre


Press Trust of India  |  New Delhi 


The goods and services tax (GST) Council at a meeting on Saturday broadly agreed on the contours of two key legislations — Central (CGST) and Integrated (IGST) — but a final approval is likely only by mid-March.

Union Finance Minister Arun Jaitley met with his state counterparts on Saturday and discussed the legislations to be adopted by Union Territories, but there was no discussion with regard to the State GST (SGST) Bill.

"As many as 26 changes sought by states have been accepted by the Centre. This shows the federalist character of India. CGST and IGST will come up for further discussion at the next meeting of the Council in mid-March," West Bengal Finance Minister Amit Mitra said.

Mitra further said both the Centre and states have agreed to provide a composition scheme to dhabas and small restaurants.

"States were seeking that dhabas and small restaurants can adopt the composite scheme. The Centre has agreed to that and now these small businesses will pay 5 per cent tax (to be shared equally between the Centre and states)," Mitra said.

Delhi Deputy Chief Minister Manish Sisodia said the CGST and IGST legislations have been broadly agreed upon at the Council meeting on Saturday.

"Real estate should be brought under GST. Everybody knows that a lot of black money finds its way into real estate and bringing real estate under GST will help in curbing black money," Sisodia said.

Jammu & Kashmir Finance Minister Haseeb Drabu felt that "some minor editorial changes" are required in the legislations and they have to be sent to the legal department again.

Mitra further said IGST, which relates to the taxation of inter-state transfer of goods, the legislation will provide for the cross empowerment of state and central officers.

"It has been agreed that there will be the cross empowerment of states. Also, we did not want this as a notification, we wanted in the Act so that never in future can another council come and say states won't have power," Mitra stressed.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sat, March 04 2017. 17:27 IST