Lok Sabha approves 4 Supplementary GST Bills

Central Government is all set to roll out GST from July 1, 2017. Another revolutionary step has been taken. After Almost 7 hours, a day long discussion and crossing all the setbacks moved by the opposition parties, finally Lok Sabha managed to pass following four bills  which were earlier passed by Union Cabinet on March 20, 2017:-

Let’s have a glimpse to these four bills which are recently passed in Lok Sabha, one by one:

1.Central Goods and Services Tax Bill, 2017 (CGST Bill, 2017)

• A Bill to make a provision for levy and collection of tax on intra-state supply of goods or services or both by the Central Government and the matters connected therewith or incidental thereto.
• This Bill will give powers to the centre to levy tax after levies of excise, service tax and additional custom duty is subsumed.
• This Bill also provides for e- commerce companies to collect tax at source at a rate not exceeding 1 per cent of net value of taxable supplies, out of payments to suppliers supplying goods or services through their portals.
• It will be applicable to whole of India (except the State of Jammu and Kashmir).
• The CGST fixed the peak rate at 20 per cent.

2. Integrated Goods and Services Tax Bill, 2017 (IGST Bill, 2017)

• A Bill to make a provision for levy and collection of tax on inter-state supply of goods or services or both by the Central Government and the matters connected therewith or incidental thereto.
• This Bill provides for the levy and collection of tax on supply of goods and services between states.
• It will be applicable to whole of India (except the State of Jammu and Kashmir).

3. GST (Compensation to States) Bill, 2017

• A Bill to provide for compensation to the States for the loss of revenue arising on account of implementation of the goods and services tax in pursuance of the provisions of the Constitution (One Hundred and First Amendment) Act, 2016.
• This Compensation Law will provides for levy of cess on top of the peak rate of the approved tax on luxury car, paan masala, tobacco, aerated waters and coal to create a non- lapsable fund for compensating States. In other words, products which are harmful for health will be taxed at 28 per cent and the difference from current rate will go to compensation fund
• It applies to Whole of India.

4. Union Territory Goods and Services Tax Bill, 2017 (UTGST Bill, 2017)

• A Bill to make a provision for levy and collection of tax on intra-state supply of goods and services or both by the Union Territories (Chandigarh, Andaman and Nicobar Islands, Lakshadweep, Dadra and Nagar Haveli and Daman and Diu) and the matter connected therewith or incidental thereto.
• This Bill will enable levy and collection of tax on supply of goods and services or both within a union territory.

All the four bills after a day long discussion, finally approved by the Lower House of Parliament, next would be presented before the upper house of Parliament.

Author: C S Ekta Maheshwari is the Author of this article and is Company Secretary by profession. The Author can be reached at [email protected]

Disclaimer: The entire contents of this article is solely for information purpose and have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation.. It doesn’t constitute professional advice or a formal recommendation. The author has undertook utmost care to disseminate the true and correct view and doesn’t accept liability for any errors or omissions. You are kindly requested to verify & confirm the updates from the genuine sources before acting on any of the information’s provided herein above.