TNPSC Current Affairs July 2017 1
India rollout its ambitious and biggest tax reform since Independence, the Goods and Services Tax (GST) in Midnight session of Parliament on Friday. GST will subsume many central and state taxes that are currently levied on goods and services and also helps in 2% growth of Countries GDP.
About the GST Bills(official Release)
- The GST Council has already finalised the 4 tier tax structure 5,12,18 and 28 Per cent and overall cap of 40 Per cent. It also passed four bills related to GST.
- Central GST bill makes provisions for levy and collection of tax on intra-state supply of goods or services or both by the central government
- IGST (Integrated GST) Bill makes provisions for levy and collection of tax on inter-state supply of goods or services or both by the Central government.
- The UTGST (Union Territory GST) Bill makes provisions for levy on collection of tax on intra-UT supply of goods and services in the Union Territories without legislature.Union Territory GST is akin to States Goods and Services Tax (SGST) which shall be levied and collected by the States/ Union Territories on intra-state supply of goods or services or both.
- The Compensation Bill provides for compensation to the states for loss of revenue arising on account of implementation of the goods and services tax for a period of five years as per section 18 of the Constitution (101th Amendment) Act, 2016.