GST Council passes crucial Central GST, Integrated GST laws

Elbert EdwardsMar 05, 2017

The next meet of GST Council is scheduled on March 16. Subsequently, the bills will be tabled together in Parliament in the second half of the budget session.

This means the central GST and state GST can be up to 20 percent each, leaving the scope for a maximum levy at 40 percent. "Today, laws were put for discussion, GST council approved the laws".

Further, the 4-slab rate structure of 5%, 12%, 18% and 28% that was agreed on a year ago will not be disturbed by this increase in the peak rate.

The Goods and Services Tax (GST) Council, which approved the Central GST and Integrated GST on Saturday in its 11th meeting, witnessed the state finance ministers talking in chorus with the centre.

The remaining two Bills namely, State GST and the Union Territory GST, which would be nearly a replica of the CGST Act, would be taken-up for approval in the next meeting of GST Council scheduled on March 16 2017.

The government is now poised to implement GST from July 1 provided it got necessary approval from Parliament, he said.

One such indication is that the GST Council will in the laws insert a provision to set the peak rate of GST at 40% (i.e. 20% CGST + 20% SGST) instead of 28% (i.e. 14% CGST + 14% SGST).

Officials said this will now be changed to say the rate will not exceed "20 percent".

The S-GST, which will allow states to levy the tax after VAT and other state levies are subsumed in GST, will have to be passed by each of the state Assemblies.

The government is keen to roll out the new regime from 1 July.

Mirroring the model GST law, the CGST, SGST and UTGST law will be firmed up by the Centre, states and Union Territories, respectively.

CNBC reported that West Bengal Finance Minister Amit Mitra said while the bills had broadly been cleared, the states had wanted 26 minor changes.

With regard to exporters, the Council has decided that 90 per cent of the refunds claim will be made within seven days of filing the application.

The Centre will also levy and collect the IGST on all inter-State supply of goods and services. The UT-GST will also go to Parliament for approval.

Related Articles:



« Previous article
Next article »


Popular Pages

Spotify Is Readying a Hi-Fi Music Streaming Tier
The music streaming provider is still in the middle of its price testing, The Verge reported. While users have been excited by the new offering, it doesn't appear to be functional yet.

Judge OKs pretrial release of Pulse gunman's widow but delays order
Salman and her young son had gone to live with her mother in suburban San Francisco , where Salman was arrested in January. In a statement posted to social media, Orlando police Chief John Mina said he was disappointed by the turn of events.

Avalanche trade Jarome Iginla to Kings
Acquiring King was the latest move by Montreal to get bigger and tougher. The Kings have been wheeling and dealing this trade deadline.

Eurozone inflation overshoots European Central Bank target to hit 2% in February
Inflation is a red flag for many Germans as the country suffered from depreciation of money and mass unemployment in the 1920s. The ECB is now coming under increasing pressure - particularly from the German government - to scale back on that stimulus.

Caterpillar Office Raid Fuels Biggest Slump in Eight Months
Caterpillar's stock traded recently at $94.37, down more than 4 percent on the day. " Caterpillar is cooperating", it said. An IRS spokesman said agents "were on site on official business", but declined to comment further.

Syrian Govt, Rebels Agree on Agenda for Future Peace Talks
The Russian military says its officers have planned and directed the Syrian operation to recapture Palmyra. Rudskoi said over 1,000 IS militants were killed in the fight for Palmyra.

Agency envisions slashes in budget, programs at EPA
According to Bloomberg , those policy reversals include the Clean Power Plan and the Waters of the US rule. Myron Ebell, who led the EPA's transition team, said Monday that 24 percent "sounds a little steep".

Drone strikes kill 4 Qaeda suspects in Yemen
Conducted in partnership with Yemen's government, the strikes were coordinated with President Abd Rabuh Mansur Hadi, Davis said. The strikes are the first to target the terror group since a deadly January raid that left Chief Petty Officer Ryan Owens dead.

Case-Shiller: US Home Prices Increased 0.7% In December
New home sales at 555,000 in 2016 are up from recent years but remain below the average pace of 700,000 per year since 1990. Since 1975, the average pace is 1.3 percent; about two-thirds of the time, the rate is between -4 percent and +7 percent.

US carries out more strikes in Yemen, US officials tell Reuters
The 20 precision strikes targeted militants, equipment and infrastructure, Pentagon spokesman Capt Jeff Davis said. More than 10,000 people have been killed in ground battles and airstrikes since then, many of them civilians.