TAX RATE IN GST
A tax trigger aimed to replace the current complex structure of multiple indirect taxes in favour of a comprehensive dual Goods and Services Tax (GST) is becoming a reality soon. With clear road map being laid down by the Finance Ministry, the Government seems on course to fast track the entire process to achieve targeted GST implementation effective 1 July 2017.
On 12 April 2017, the Central Government enacted four GST Bills:
Central GST (CGST)
Integrated GST (IGST)
Union Territory GST (UTGST)
Bill to Compensate States
Till date, more than half the states have passed the State GST (SGST) law in the respective State assemblies, while other States are expected to do it by end of May 2017. Union territories with legislature, i.e., Delhi & Puducherry, will adopt SGST Act and the balance 5 Union territories without legislatures will adopt UTGST Act.
The enrolment process for migrating existing taxpayers to the proposed tax regime through GST common portal have already commenced. GST Network, an IT backbone of GST, will soon carry out the test run of its Portal.
The GST Council consisting of representatives from the Central as well as state Government, met on fourteen occasions in last six months and cleared -
- GST laws,
- GST Rules,
- Tax rate structure including Compensation Cess,
- Classification of goods and services into different rate slabs,
- Tax administration