New Delhi:
Finance Minister Arun Jaitley at an interaction with representatives of industry chambers on Friday expounded upon the government plans on GST and prospects of economic growth for the country.
Raising hopes to get to get Central GST (CGST) and Integrated GST (IGST) draft legislations that needs approval at the next GST Council meeting on February 18.
While the all-powerful GST Council has already decided on a four-slab tax structure for the indirect tax regime, the levy for different goods and services will be decided by May or June.
“Now the main policy issues (with regard to CGST and IGST) over 9 meetings have been put to rest. Final drafts are now being prepared and once they are circulated with the legally vetted language, those drafts will have to then go to Parliament and state legislature (for SGST) for approval.
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“We will meet on 18th of this month. Hopefully, my target currently is to finalise those drafts and take them in the second part of the budget session in Parliament,” Jaitley said at thepost-Budget meet with industry chambers.
Points to be noted:
#CGST will subsume central taxes of excise, central sales tax and service tax
# IGST is to be charged on movement of goods and services from one state to another.
# States will also have to pass SGST or State Goods and Service Tax.
# A GST Compensation Act needs to be approved by Parliament to compensate to the states that lose revenue from implementation of GST in first five years.
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“One parallel exercise is fitment of various commodities in to the rate structure for that the officer have to meet,” Jaitley said.
GST Council has fixed the four-tier structure of 5 per cent, 12 per cent, 18 per cent and 28 percent.
Also there are a few items that remain to be discussed at the GST Council.
