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Indian Cabinet Approves Four GST Bills for Parliamentary Introduction

This article details the Indian Cabinet's approval of four crucial Goods and Services Tax (GST) bills on March 20, 2017. These include the CGST, IGST, UTGST, and Compensation to States Bills. This legislative milestone aims to facilitate the GST Council's objective of a July 1 implementation deadline. The approved bills are set for introduction in the Lok Sabha as Money Bills.

📖 1 min read read🏷️ GST Legislation

Indian Cabinet Approves Four GST Bills for Parliamentary Introduction

Key Legislative Approvals

On March 20, the Cabinet granted approval for four crucial legislative proposals: the Central Goods and Services Tax Bill 2017 (CGST Bill), the Integrated Goods and Services Tax Bill 2017 (IGST Bill), the Union Territory Goods and Services Tax Bill 2017 (UTGST Bill), and the Goods and Services Tax (Compensation to the States) Bill 2017. This approval is a significant step towards enabling the GST Council to meet its target implementation date of July 1. These legislative drafts are scheduled for presentation in the Lok Sabha as Money Bills during the current week. This development was noted by the Economic Times.

Further Reading

Frequently Asked Questions

What is the primary objective of implementing GST in India?
The primary objective of GST in India is to simplify the indirect tax structure by subsuming multiple central and state taxes into a single, unified tax, thereby creating a common national market and reducing the cascading effect of taxes.
What are the main components of GST in India?
The main components of GST in India include Central GST (CGST) for intra-state supplies, State GST (SGST) for intra-state supplies, Integrated GST (IGST) for inter-state and import transactions, and Union Territory GST (UTGST) for supplies within Union Territories.
When was the Goods and Services Tax (GST) formally rolled out in India?
The Goods and Services Tax (GST) was formally rolled out in India on July 1, 2017, marking a significant reform in the country's indirect taxation system.
Who is required to register for GST?
Businesses with an annual turnover exceeding a prescribed threshold limit (which varies by state and type of business) are generally required to register for GST. Certain specific businesses, irrespective of turnover, also need to register, such as those engaged in inter-state supplies or e-commerce operators.
What is Input Tax Credit (ITC) under GST?
Input Tax Credit (ITC) under GST allows businesses to claim credit for the GST paid on purchases of goods and services that are used for business purposes. This credit can then be utilized to offset the GST liability on their outward supplies, preventing double taxation.

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