Mumbai: The four key legislations related to the Goods and Services Tax will be taken up in Parliament for discussion today. The House has allotted seven hours for holding a talk on crucial bills that seek to trigger biggest tax reforms ever.
Finance Minister Arun Jaitley on Tuesday had said the government wanted a broad consensus on four key GST laws that were tabled in Parliament n Monday. Four GST legislations are Central GST, Integrated GST, Union Territory GST and Compensation GST.
Here are 10 facts that you should know what these four GST bills have in store for India’s tax paying populace.
1) The government wants to put the Goods and Services Tax law into effect from July 1, a deadline that has been revised from the earlier deadline of April 1. Deadline was revised due to some differences between the Centre and the States over sharing of powers and revenues.
2) The pan-India tax regime will subsume all central and state levies. Central GST will merge central excises, customs, central sales tax etc into itself. Apart from that the State GST will subsume state Value Added Tax and other state levies.
3) The Central GST will allow the Union government to impose and collect taxes on both goods and services within a state. CGST is the main bill that the Parliament is debating today.
4) GST Council at its 12th meeting had incorporate a peak rate of 40 per cent. This peak rate has been included only as an enabling provision so that the government does not need to approach Parliament for a rate change in future.
5) GST also defines how the e-commerce companies will be taxed under the new indirect tax regime. These online players will be brought under the tax collected at source (TCS) bracket which will not be more than 1 per cent.