Union Cabinet clears four draft GST bills, to be introduced in Parliament soon

20 March 2017, 11:27 AM
Goods and Service Tax - File Photo (Getty)
Goods and Service Tax - File Photo (Getty)

The Cabinet has approved four draft bills to implement the much-awaited Goods and Services Tax (GST) bills, a government official said on Monday.

The approval of the draft bills shall pave the way for Prime Minister Narendra Modi to implement the landmark tax reform from July.

The four bills are likely to be taken up by the parliament this week, and a separate state GST bill in state assemblies later, the official also said, requesting anonymity ahead of a planned news briefing.

The GST Council, comprising federal and state finance ministers, has already cleared all five draft laws, the Central GST, Integrated GST, state GST, Union territory GST and rules on compensating states for revenue losses.

There would be four tax slabs of 5, 12, 18 and 28 per cent, plus a levy on taxes on items like cars, aerated drinks and tobacco products to compensate states for any revenue losses in the first five years.

The new tax, biggest tax reform since India got independence in 1947 from the British colonial rule, is expected to boost the rate of economic growth by about 0.5 percentage points, broaden the revenue base and cut compliance cost for firms.

First Published: Monday, March 20, 2017 11:21 AM
For all the latest Business News Download the News Nation App available on Android and iOS.