The political corridors are in full gestures as the GST council meeting on Thursday will see how the decision will be taken upon the staying two vital bills – State GST (SGST) and Union Territory GST (UTGST). The decision of the council will be the torch bearer for the upcoming tax regime scheduled to be applicable from July 1.
Recently, Integrated GST (IGST), Central GST (CGST) and Compensation bill were passed and the bills are in the queue for the conclusion and the committee is rounding off to the state assemblies to get it done. Although parliament and cabinet are still in the row to finally say yes top the Goods and service tax of India in its final stage.
Read Also: What is Actual Meaning of SGST, IGST and CGST ?
The law has a key strategy to present itself to the council for the final approval and for the same the industries are looking some ways to categorized all those goods and service to fit them into different slabs accordingly. In a perfect model, the state and center would get half ratio as in the grant of CGST and SGST.
Under the GST, the states and the Center will gather indistinguishable rates of taxes on goods and services. For example, if 18 percent is the GST rate on an item, both the states and the Center will get 9 percent each called the CGST and SGST rates.
The Center will likewise require and gather the IGST on all inter-state supply of goods and services. The IGST component has been intended to guarantee a consistent stream of input tax credit starting with one state then onto the next.