All you need to know about GST bill

The cabinet has approved to drop the additional 1 percent tax in the proposed bill

GN Bureau | July 28, 2016


#Rajya Sabha   #cabinet   #GST bill  


 In an attempt to allow for a smooth passage of the Goods and Services Tax (Constitutional Amendment) Bill in the Rajya Sabha, the cabinet has approved to drop the 1 percent additional tax and also to guarantee states compensation for any revenue loss in the first five years of rollout.

The cabinet also decided that any dispute between states and the centre would be adjudicated by the GST Council, to have representation from both the centre and states.
 
The bill has faced hurdles in the Rajya Sabha in the past due to lack of a clear majority by the BJP.
 
Here’s all you need to know about the bill:
 
  • Concurrent powers to union and state legislatures to legislate on GST.
  • A goods and services tax council will be created as a joint forum of the centre and the states. The council would make recommendations to the union and the states on important issues like tax rates, exemptions, threshold limits, dispute resolution modalities, among others.
  • Central taxes like central excise duty, additional excise duties, service tax, additional customs duty and special additional duty of customs, etc. will be subsumed in GST.
  • At the state level, taxes like vat/sales tax, central sales tax, entertainment tax, octroi and entry tax, purchase tax and luxury tax, etc. would be subsumed in GST.
  • All goods and services, except alcoholic liquor for human consumption, will be brought under the purview of GST. Petroleum and petroleum products have also been constitutionally brought under GST. However, it has also been provided that petroleum and petroleum products shall not be subject to the levy of GST till notified at a future date on the recommendation of the GST council.
  • Both centre and states would simultaneously levy GST across the value chain.
  • The centre would levy and collect the integrated goods and services tax (IGST) on all inter-state supply of goods and services.
 

Comments

 

Other News

Amitav Ghosh’s new work: Connections between the word and the world

Wild Fictions: Essays By Amitav Ghosh HarperCollins, 496 pages, Rs 799.00 Amitav Ghosh, one of a handful of Ind

How markets can help (and also hinder) fight against pollution

In the annals of environmental policy, few ideas have been as transformative as the Emissions Trading System (ETS). Born from the minds of economists in the late 1960s, this market-based approach to pollution control has evolved from a theoretical concept to a global tool in the fight against climate chang

Will Bihar complement the resolution of Viksit Bharat 2047?

As India completes its diamond jubilee as a republic, I am reminded of a statement by Dr. A.P.J. Abdul Kalam, delivered during an address to the Bihar Chamber of Commerce in Patna on March 28, 2006. He said, “I have visited Bihar numerous times, and it has always been a source of happiness for me to

All you wanted to know about Budget: Key Highlights

Here are the key highlights of the proposal of the Union Budget presented in parliament by finance minister Nirmala Sitharaman on Satuday: NO INCOME TAX ON AVERAGE MONTHLY INCOME OF UPTO RS 1 LAKH; TO BOOST MIDDLE CLASS HOUSEHOLD SAVINGS & CONSUMPTION BENEFITTING

Four engines of development: Agriculture, MSME, investment & exports

Union minister of finance and corporate affairs Nirmala Sitharaman presented the Union Budget 2025-26 in Parliament on Saturday. Here is the summary of her budget speech, Part A: Quoting Telugu poet and playwright Shri Gurajada Appa Rao’s famous saying, ‘A country is not just its

No income tax on annual income up to Rs. 12 lakh

Reaffirming the government’s commitment to the philosophy of “trust first, scrutinize later”, the Union Budget 2025-26 has reposed faith in the middle class and continued the trend of giving relief in tax burden to the common taxpayer. Presenting the Budget in the Parliament on Saturday,

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now



Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter