The National Democratic Alliance (NDA) government on Monday introduced the last batch of legislations in the Lok Sabha for rolling out the goods and services tax (GST).
- Integrated GST tax rate to be more or less equal to sum total of Central GST, State GST or Union Territory GST.
The apex body of Centre and states on the tax reform, the GST Council, has already cleared drafts of all legislations required to be passed by the Parliament and state assemblies for implementing the new indirect tax.
The government is keen to bring in GST from July 1, and other aspects like bringing petroleum and land under its ambit will be considered after the first year of implementation of the new indirect tax, he had said in the Rajya Sabha.
The Narendra Modi government is racing against time to roll out GST from July, after successive governments have missed deadlines. The amendments can either be rejected or incorporated by the Lok Sabha.
The 40 per cent would be apportioned equally between the Centre and the states.
The Union Territory Goods and Services Tax Bill, 2017, will enable levy and collection of tax on intra-state supply of goods and services or both by the union territories.
The Compensation Law provides for levy of cess on top of the peak rate of approved tax (28 per cent presently) on paan masala, tobacco, aerated waters, luxury cars and coal to create a non-lapsable fund for compensating states. And for those who are earning more than Rs 1 crore, the additional surcharge is 15%. A person convicted is punishable by up to five years of imprisonment plus a fine. Here Congress party again opposed the bill presentation made by Arun Jaitley.
The Speaker, forced to give a ruling by the Opposition, dismissed their objections, saying that the Bills were circulated to all MPs on Saturday morning and that she had now permitted the government to introduce these.
GST, which has been touted as the biggest tax reform since Independence, has entered the last lap and its passage by Parliament will pave the way for integrating India as one tax country, wherein multiple state and Central levies would be replaced by a single tax.