Source: News Bharati English20 Mar 2017 18:32:04
New Delhi, Mar 20 : The Union Cabinet chaired by the Prime Minister Narendra Modi has approved four Goods and Services Tax (GST) related bills, including the Central GST (CGST) Bill 2017, Integrated GST (IGST) Bill 2017, Union Territory GST (UTGST) Bill 2017, and the GST (Compensation to the States) Bill 2017.
The above four Bills had been approved by the GST Council earlier after the above four Bills had been approved by the GST Council earlier after thorough discussion in over 12 meetings of the Council held in the last six months.
The CGST Bill makes provisions for levy and collection of tax on intra-state supply of goods or services for both by the Central Government. On the other hand, IGST Bill makes provisions for levy and collection of tax on inter-state supply of goods or services or both by the Central Government.
The UTGST Bill makes provisions for levy on collection of tax on intra-UT supply of goods and services in the Union Territories without legislature. Union Territory GST is akin to States Goods and Services Tax (SGST) which shall be levied and collected by the States/Union Territories on intra-state supply of goods or services or both.
The Compensation Bill provides for compensation to the states for loss of revenue arising on account of implementation of the goods and services tax for a period of five years as per section 18 of the Constitution (101st Amendment) Act, 2016.
The Government is committed to early introduction of GST, one of the biggest reforms, in the country as early as possible. GST Council has decided 1st July as the date of commencement of GST.