The Union cabinet finally approved the long-awaited GST draft bills in a meeting held in favor of India’s upcoming taxation regime, and now the remaining task is to get it approved in the Parliament as soon as possible. A total of four draft legislations are supposed to be introduced as money bills in the parliament i.e. the Compensation Law, the Central-GST (C-GST), Integrated-GST (I-GST) and Union Territory-GST (UT-GST) after the approval of Union cabinet and earlier got approved in the meeting of GST council.
An official source mentioned that “The GST legislations have been cleared by the Cabinet. These would be introduced in Parliament this week, could be even today.” The meeting of union cabinet was only held to discuss these prime issues of GST legislations in the presence of Prime minister Narendra Modi. The source also told that “the four legislations would be taken up for discussion together in Parliament. Once approved by Parliament, the states would start taking their SGST bill for discussion and passage in the respective state assemblies.”
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In the recent scenario, the GST council has approved the four legislations including the State GST bill but in the matter of importance, the SGST must also be approved by the individual state assemblies while the other four laws must be required to pass in the influence of the Parliament. The government is also eyeing upon the approval of these draft bills including CGST, IGST, UTGST and the compensation bill, in which the hope is resurrected for the SGST to be approved by the state assemblies.
The mixed GST of dual control will be applicable on both goods and services in which the earnings will be shared in half in the pockets of states and center. Abhishek Rastogi, Partner, Khaitan & Co discussed on the scenario of current GST and told that, “The GST plan is well on time and July 1 looks realistic!, The timely approval of the Bills by the Cabinet ensures that the industry would have reasonable time to peruse the details of the law impacting them. As a corollary, the assessees will be better prepared for implementation. It is hoped that all the State Assemblies clear SGST on time as well.”
