Jaitley introduces four bills on Goods and Services Tax in Parliament
The bills introduced are the Central GST Bill, the Integrated GST Bill, the Union Territory GST Bill, and the GST (Compensation to States) Bill.
- Mar 27, 2017,
- Updated Mar 27, 2017 1:09 PM IST
Union finance minister Arun Jaitley on Monday introduced four bills on the Goods and Services Tax (GST) in the lower house of parliament, paving the way for the government to launch the landmark tax reform.
The bills introduced are the Central GST Bill, the Integrated GST Bill, the Union Territory GST Bill, and the GST (Compensation to States) Bill.
The state assemblies will also have to pass the State GST bill before the new tax system can be rolled out later this year.
The new tax, which the government expects to implement from July 1, is the biggest tax reform since India got independence in 1947 from the British colonial rule.
The tax is expected to boost the rate of economic growth by about 0.5 percentage points, broaden the revenue base and cut compliance cost for firms.
Earlier, the Union Cabinet and GST Council had cleared four supporting GST legislations.
Last year in August, the Rajya Sabha cleared a bill that amended the Constitution to enable India's biggest tax reform - GST.
GST is a proposed system of indirect taxation merging most of the existing taxes into single system of taxation. It was introduced as The Constitution (One Hundred and First Amendment) Act 2016.
GST would be a comprehensive indirect tax on manufacture, sale and consumption of goods and services throughout India, to replace taxes levied by the central and state governments.
The GST is consumption based tax levied on the supply of Goods and Services which means it would be levied and collected at each stage of sale or purchase of goods or services based on the input tax credit method. Once it is in force, GST will replace at least 17 state and central taxes.
(with inputs from Reuters)
Union finance minister Arun Jaitley on Monday introduced four bills on the Goods and Services Tax (GST) in the lower house of parliament, paving the way for the government to launch the landmark tax reform.
The bills introduced are the Central GST Bill, the Integrated GST Bill, the Union Territory GST Bill, and the GST (Compensation to States) Bill.
The state assemblies will also have to pass the State GST bill before the new tax system can be rolled out later this year.
The new tax, which the government expects to implement from July 1, is the biggest tax reform since India got independence in 1947 from the British colonial rule.
The tax is expected to boost the rate of economic growth by about 0.5 percentage points, broaden the revenue base and cut compliance cost for firms.
Earlier, the Union Cabinet and GST Council had cleared four supporting GST legislations.
Last year in August, the Rajya Sabha cleared a bill that amended the Constitution to enable India's biggest tax reform - GST.
GST is a proposed system of indirect taxation merging most of the existing taxes into single system of taxation. It was introduced as The Constitution (One Hundred and First Amendment) Act 2016.
GST would be a comprehensive indirect tax on manufacture, sale and consumption of goods and services throughout India, to replace taxes levied by the central and state governments.
The GST is consumption based tax levied on the supply of Goods and Services which means it would be levied and collected at each stage of sale or purchase of goods or services based on the input tax credit method. Once it is in force, GST will replace at least 17 state and central taxes.
(with inputs from Reuters)