Union Cabinet Approves Four GST Bills

Team Udayavani, Mar 20, 2017, 1:09 PM IST

New Delhi: A union cabinet meeting chaired by Prime Minister Narendra Modi has approved four GST related bills including, the Central Goods and Services Tax Bill 2017 (The CGST Bill), integrated Goods and Services Tax Bill 2017 (The IGST Bill), Union Territory Goods and Services Tax Bill 2017 (The UTGST Bill) and Goods and Services Tax (Compensation to the States) Bill 2017 (The Compensation Bill).

The four bills have been earlier approved by the GST Council after thorough, clause by clause, discussion over 12 meetings of the council held in the last six months. The CGST Bill makes provisions for levy and collection of tax on intra-state supply of goods or services for both by the Central Government. On the other hand, IGST Bill makes provisions for levy and collection of tax on inter-state supply of goods or services or both by the central government.

The UTGST bill makes provisions for levy on collection of tax on intra-UT supply of goods and services in the union territories without legislature. Union Territory GST is akin to states Goods and Services Tax (SGST) which shall be levied and collected by the states, union territories on intra-state supply of goods or services or both.

The compensation bill provides for compensation to the states for loss of revenue arising on account of implementation of the goods and services tax for a period of five years as per section 18 of the constitution (One Hundred and First Amendment) Act, 2016.