Prez gives assent to GST laws; task cut out for states
The legislative assemblies of all states need to pass the state GST law in order to switch over from the current Value Added Tax (VAT) regime and several other local levies to GST.
The eastern state of Jharkhand has said that it will call a special session to pass the GST law soon.
The four bills CGST, IGST, UTGST and compensation law — were passed by Parliament on April 6. While the CGST will give powers to the Centre to levy GST on goods and services after Union levies like excise and service tax are subsumed, the IGST will be levied on inter-state supplies.
Simultaneously, the fitment of GST rates will be discussed by the GST Council on May 18-19.
The GST Council has earlier approved a four-tier tax structure of 5%, 12%, 18% and 28%. It has also approved a 12% cess for luxury and sin goods. The peak cess rate has been fixed at 15%.
The service tax rates may pinch the consumers as it is expected to go up to 18% from the current 15% under the GST regime.
GST, which will subsume as many as 12 different indirect taxes of central excise duty, central sales tax and service tax are to be merged with CGST, while SGST will subsume state sales tax, VAT, luxury tax and entertainment tax.
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