Published: Sat, February 18, 2017
Research | By Jo Caldwell

GST Council Has Cleared Draft Compensation Law: Arun Jaitley

GST Council Has Cleared Draft Compensation Law: Arun Jaitley

A decision on which rate slabs would apply to which goods and services will be taken after the next meeting of the GST council to be held on March 4-5, said Finance Minister Arun Jaitley after a council meet in Udaipur on Saturday. Another agenda to be discussed during the meeting would be on the bill to compensate states for revenue losses arising from a transition to GST.

"During the legal drafting of the C-GST and S-GST and I- GST laws certain contentious issues came to the fore and it was necessary to place all the issues before the Council again to take specific directions", he said.

The government is keen to roll out the new regime from July 1 but for that, it will have to get two laws - the Central GST (CGST) Act and Integrated GST (IGST) Act - approved by Parliament and each of the state legislatives have to pass the State GST (SGST) Act. "March 4-5 the legally vetted drafts of these laws will come before the Council, which it will try to approve", Jaitley said. "The SGST law will go to the state assemblies for approval".

As regards the State of Jammu and Kashmir, the State Government has set up a high-level committee to study the GST Bill adopted in the Rajya Sabha and by some State governments, and then draft its own Bill to ensure that its special powers remain intact.

Among key measures, the Council today gave its nod to anti-profiteering clause that wants to front-load low tax rate benefits to consumers, according to CNBC-TV18.

GST, which will replace a plethora of central and state taxes, is a consumption based tax levied on sale, manufacture and consumption on goods and services at a national level.

Other issues included taxation of services and Value-Added Tax in work contracts, composition limit and definition of agriculture.

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