New Delhi, March 20: The Cabinet meeting chaired by PM Modi today cleared four Goods and Services Tax (GST) related bills which have already been approved by the GST Council after detailed discussions.
The draft legislations include Central Goods and Services Tax (cGST) Bill 2017, Integrated Goods and Services Tax (iGST) Bill 2017, Union Territory Goods and Services Tax Bill (uTGST) 2017, and Goods and Services Tax (Compensation to the States) Bill 2017.
After the meeting, a government statement said, “The Government is committed to early introduction of GST,” citing it as one of the biggest tax reforms in the country.
Once approved, levy of Goods and Services Tax (GST) will get legal backing.
All four bills were approved by the GST Council after thorough, clause by clause discussion over 12 meetings held in the last six months.
While the cGST Bill makes provisions for levy and collection of tax by the central government on intra-state supply of goods and services, the iGST Bill does so for inter-state supply.
Similarly, the uTGST Bill is for the union territories like Andaman and Nicobar Islands, Lakshadweep, Daman and Diu and Dadra and Nagar Haveli, which do not have their independent legislative assemblies.
The Compensation Bill provides for compensation to the states for a period of five years for loss of revenue due to implementation of the goods and services tax.
Earlier Finance Minister Arun Jaitley who is also the head of GST Council, had said that GST would be implemented by July 1.