The Union Cabinet on Monday approved four legislations to implement the Goods and Services Tax (GST), ahead of their introduction in Parliament this week to enable roll out of the tax reform from July 1.
Approval of the bills by Parliament and a separate one by all state assemblies will complete the legislative process for roll out of one-nation-one-tax regime by merging central taxes like excise duty and service tax and state levies like VAT.
The GST Council has already approved four-tier tax slabs of 5, 12, 18 and 28 per cent plus an additional cess on demerit goods like luxury cars, aerated drinks and tobacco products. The work on for putting various goods and services in different slabs is slated to begin next month.
“The Union Cabinet chaired by Prime Minister Narendra Modi has approved the four GST related bills — The Central Goods and Services Tax Bill 2017 (The CGST Bill), The Integrated Goods and Services Tax Bill 2017 (The IGST Bill), The Union Territory Goods and Services Tax Bill 2017 (The UTGST Bill) and The Goods and Services Tax (Compensation to the States) Bill 2017 (The Compensation Bill),” an official statement said.
“These bills would be introduced as Money Bills in Parliament this week, could be even today,” a source said, adding that discussion on the four legislations could happen together.
The GST legislations were the only agenda in Monday’s meeting of the Union Cabinet.
“The Government is committed to introduction of GST, one of the biggest reforms, in the country as early as possible.
GST Council has decided July 1 as the date of commencement of GST,” the statement said.
These four legislations had been cleared by the Council in its last two meetings this month.