New Delhi, Nov 27 (DHNS): After its demonetisation drive, the government is preparing to get the Goods and Services Tax through Parliament this Winter session.
It released a revised model draft on supporting GST laws on Saturday, which among other things, elaborate the Centre’s proposal to levy cess to finance any potential losses that states may incur. The draft law is expected to be discussed by the GST Council in its meeting on December 2-3 after getting trade, industry and other stakeholders’ comments. It will then be tabled in Parliament.
“The revised draft model GST law, Integrated GST law and draft GST compensation law will be considered by the GST Council,” Revenue Secretary Hasmukh Adhiya tweeted. While the Central GST Bill will facilitate the levy of tax on intra-state supply of goods or services, Integrated GST will enable levy of tax on inter-state supply of goods or services. Compensation bill will determine compensation to states for five years on losses on account transition to GST and its implementation.
In the revised draft, the Centre has capped the central and state GST rate at 14% each. In the last GST Council meeting, the rates were finalised with a highest band 28% and lowest of 5%. In the revised draft, the Centre also retains the provision of imposing 1% tax collected at source on ecommerce companies. For service tax, the assesses are needed to register in the state they operate.
On compensation, a separate revised GST (Compensation to the States for loss of Revenue) Bill was put out, which said the GST compensation will be released at the end of every quarter.
Proceeds of the GST compensation cess to be credited to a non-lapsable fund known as the GST Compensation Fund in the Public Account.
On the roll
The revised model draft elaborate the Centre’s proposal to levy cess to finance any losses that states may incur
The draft model GST law, Integrated GST law and draft GST compensation law will be considered by GST Council
In the revised draft, the Centre has capped the central and state GST rate at 14% each