Central-GST, Integrated-GST, Union Territories-GST and the compensation law were introduced in the Lok Sabha by Finance Minister Arun Jaitley.
Sources say the bills could be taken up for discussion as early as March 28. Sources also added that the government is looking to pass these GST Bills in the Lower House by March 29 or latest by March 30.
CGST bill which will amalgamate all the indirect central government levies like sales tax, service tax, excise duty, additional customs duty (Countervailing Duty), special additional duty of customs, surcharges and cesses, provides for a maximum tax of 20 per cent. A peak rate of 40 per cent is only an enabling provision for financial emergencies.
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 the different slabs is slated to begin next month.
After being passed in Lok Sabha, these bills will move to the Rajya Sabha. The wants enough time in its hands to bring back any amendment adopted by the Upper House to the Lok Sabha before the current Parliament session ends on April 12. The amendments moved by Rajya Sabha can either be rejected or incorporated by the Lok Sabha.
Although these legislations will be introduced as Money Bills, the government wants discussion in both the Houses, the sources said.
Once these Bills are cleared by Parliament, the states will then take the state GST (S-GST) Bill to their respective assemblies. S-GST has been prepared as a model of the central GST (C-GST), with each state incorporating state-specific exemptions.
The integrated GST (I-GST) deals in taxation of inter-state movement of goods and services while the Union Territory GST (UT-GST) Bill covers taxation in UTs. The compensation law has been prepared to give a legislative backing to the Centre’s promise to compensate the states for 5 years for any revenue loss arising out of GST implementation.
Once cleared, these supporting GST bills will allow the government to meet its July deadline to roll out and implement the Goods and Services Tax. The GST tax reform will subsume excise, service tax, VAT and other local levies.
(With inputs from PTI)