President Clears Four GST Bills
New Delhi: The four Goods and Services Tax (GST) Bills passed by the Parliament last week were cleared by the President Pranab Mukherjee on Wednesday. The groundbreaking bill is said to end all indirect taxes and bring them under one umbrella is all set for roll out on July 1, 2017.
While Lok Sabha passed them on March 29, Rajya Sabha cleared them on April 6. On March 20 the central Cabinet approved them.
The bills included Central GST (C-GST), Integrated GST (I-GST), Union Territory GST (UT-GST) and the Compensation to the States Law.
The C-GST Bill allows the central government to levy and collect tax on intra-State supply of goods or services or both. Meanwhile, the I-GST Bill allows the central government to levy and collect taxes on the inter-state supply of goods or services or both.
While UT-GST is similar to the States GST (SGST) that would be levied and collected by States/ Union Territories on the intra-State supply of goods or services or both.
The Compensation Bill as mentioned in the name itself provides compensation to States for loss of revenue due to the implementation of GST for a period of five years.