New Delhi: The Centre on Monday cleared the decks for Parliament to consider the laws for rolling out the Goods and Services Tax (GST), the biggest indirect tax reform since Independence. The Narendra Modi regime has set July 1 as the deadline for implementing the new tax laws.
On Monday, the Union Cabinet, chaired by Prime Minister Modi, okayed four GST-related Bills and decided to introduce them in the Lok Sabha as “money Bills” this week itself to get them passed during the remainder of the budget session that ends on April 12. The government opted for this route to ensure that the GST is not blocked by the Opposition.
The one nation, one tax regime through the GST is to be brought in through approval of the Bills by Parliament as well as a separate Bill to be passed by the state Assemblies.
Approved separately was the draft of the State GST Bill to be sent to the state governments. These will empower the states to levy taxes on selected items as approved by the GST Council, which is headed by the Union finance minister and comprises state finance ministers.
These Bills were earlier approved by the GST Council after thorough, clause by clause, discussion over 12 meetings held in the last six months.
HOW THE CONSUMER GAINS FROM GST
GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer
Due to multiple indirect taxes being levied by the Centre and states, the cost of most goods and services are laden with many hidden taxes. Under GST, there would be only one tax from the manufacturer to the consumer, leading to transparency
Because of efficiency gains and prevention of leakages, the overall tax burden on most commodities will come down.