ST Council approves final draft of Central GST, Integrated GST laws

The GST Council headed by Finance Minister Arun Jaitley on Saturday cleared the crucial Central GST & Integrated GST law. The GST Council meet took place at Vigyan Bhavan with the aim of getting the council’s approval on iGST (integrated GST), cGST (central GST) and sGST (state GST) drafts before the second half of the budget session of Parliament that begins on March 9. The government will now introduce the model GST law, which provides a common draft of CGST, SGST, IGST, UTGST and Compensation Law, in Parliament in the second half of the Budget Session beginning next week. However, there were many issues -division of tax administration, taxing high sea trade, compensation for revenue loss – that were to be resolved between federal and state governments. And, it was feared that GST could not be cleared before September.After rounds of discussion over revenue loss, the GST Council last month approved a law to compensate states for any loss of revenue from the implementation of the new taxing system. 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 federal taxes.

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