ZEE Business
ZEE BUSINESS
Live TV
Live TV
  • India
    • Economy
    • Politics
    • Markets
  • World
    • Economy
    • Politics
    • Markets
  • Companies
    • Auto
    • Banking & Financial Services
    • Pharma
    • Energy
    • Infrastructure
    • Media
    • IT
    • Telecom
    • Consumer Products
    • Aviation
    • FMCG
  • Market
    • Mutual Funds
    • Commodity
  • Personal Finance
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
  • Technology
  • Automobile
    • Cars
    • Bikes
  • Small Business
    • SME
    • Startups
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
    • AUTHORS
Home » India News

Cabinet approves GST supplementary and compensation bills

The S-GST will allow states to levy the tax after VAT and other state levies are subsumed in the GST. 

  • Twitter
  • Facebook
  • GPlus
Cabinet approves GST supplementary and compensation bills
Sources said the Council has already finalised a four-tier tax structure of 5, 12, 18 and 28%. Photo: IANS
By PTI
Updated: Mon, Mar 20, 2017
12:26 pm
New Delhi, PTI
RELATED NEWS
Cabinet clears four GST-related bills Cabinet clears four GST-related bills
No clarity yet on GST tax rate for services: Auditor No clarity yet on GST tax rate for services: Auditor

Union Cabinet has approved GST supplementary and compensation bills on Monday, ANI reports.

The Cabinet was likely to take up for approval of the supporting GST legislations, which will now 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-GST or C-GST, Integrated-GST or I-GST and Union Territory-GST or UT-GST -- went together to the Cabinet for approval.

The GST Council, in its previous two meetings, had given approval to the four legislations as also the State-GST (S-GST) bill. While the S-GST 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-GST and the GST Compensation laws will be approved in the current session of Parliament and the S-GST by each of the state legislatures soon to help roll out the new indirect tax regime from July 1.

While a composite GST 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 VAT will be subsumed in the GST.

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

The S-GST will allow states to levy the tax after VAT and other state levies are subsumed in the GST. The UT-GST 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%, but the model GST law has kept the peak rate at 40% (20% 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 GST implementation in the first five years, has been capped at 15%.

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. 

TAGS:
Goods and Service Tax (GST)Goods and Service Tax (GST) BillGST CouncilGST legislationsArun JaitleyGST Tax RateGST tax limitCompensation LawCentral-GSTIntegrated-GSTUnion Territory-GSTEconomy
Next Article

NEXT STORY: Indian markets can raise $100 billion a year: BSE CEO

RELATED NEWS
Cabinet clears four GST-related bills Cabinet clears four GST-related bills
No clarity yet on GST tax rate for services: Auditor No clarity yet on GST tax rate for services: Auditor

LATEST NEWS

Fortis Healthcare sale: Hero Enterprise wants 2 seats on board, says Sunil Munjal

Fortis Healthcare sale: Pai, Munjal,-Burman in last lap

NuMetal, LNM back in fray for Essar Steel?

Airtel offers free Netflix! See how you can benefit

TCS Q4 results 2018: This is reason why tech firm's profit soared

TCS vs Infosys snapshot: A comparison between two IT giants

Yes Bank gets RBI nod to open offices in London, Singapore

NTPC recruitment 2018: Some vacancies to be filled via UPSC Civil Services examination; check ntpc.co.in

TCS all set to be India's first $100 bn company; as shares surge, investors richer by Rs 41,301 cr

Wells Fargo agrees to pay $1 billion to settle customer abuses

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Contact Us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • Amazon Prime Day
  • Income Tax
  • Bharti Airtel
  • NPA
  • Home Loan

Trending Topics

  • Farm Loans
  • 7th Pay Commission
  • Sanitary Pads
  • National Stock Exchange
  • GST

Follow us on

zeebiz
zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved