The Indian Union Cabinet headed by Prime Minister Narendra Modi, on 20.03.2017, has given its green signal to four supporting Bills expected to be introduced in the Parliament this week. The move is in furtherance to paving the way for GST rollout slated for July 1,
The four crucial Bills are Central Goods and Services Tax Bill 2017 (CGST Bill), Integrated Goods and Services Tax Bill 2017 (IGST Bill), Union Territory Goods and Services Tax Bill 2017 (UTGST Bill) and Goods and Services Tax (Compensation to the States) Bill 2017 (Compensation Bill) which were approved by the Indian Cabinet. The move is a part of the preparation as the country braces for the 'one nation, one tax' regime.
The four Bills were first discussed by the GST council thoroughly, clause by clause, over 12 meetings of the Council held over the past six months and finally approved.
The CGST Bill provides for levy and collection of tax on intra-state supply of goods or services for both by the Central government. On the other hand, the IGST Bill makes provisions for levy and collection of tax on inter-state supply of goods or or services or both by the Central government.
The UTGST Bill provides for levy on collection of tax on intra-UT supply of goods and services in the Union Territories without legislature. The UTGST Bill is akin to the states goods and services tax (SGST) and shall be levied and collected by the states/union territories on intra-state supply of goods or services or both.
The Compensation Bill makes provision for compensation to the state for loss of revenue arising on account of implementation of GST for five years as per Section 18 of the Constitution (One Hundred and First Amendment) Act, 2016.