30 March, 2017
The Bills are related to Central GST, Integrated GST, UT GST and GST Compensation. A similar tax will be levied by states through a separate State-GST law which is not part of the legislations introduced in the Lok Sabha but would have to be brought by all states in their assemblies.
The CGST Bill also provides for e-commerce companies to collect tax at source at a rate not exceeding one percent of net value of taxable supplies, out of payments to suppliers supplying goods or services through their portals.
Allaying apprehension of spike in prices of goods and commodities after the roll out of the GST, Finance Minister Arun Jaitley has said the tax rates will be kept at the current levels so as not to have any inflationary impact.
Reacting to the GST bill, presented by FM Jaitley, Congress leader Veerappa Moily said that this is a very serious matter.
The Centre will levy the central GST and integrated GST, while states will impose the SGST.
The rationale behind the additional cess is that this money will be needed to compensate the losses of the states against their projected revenues in the initial five years of the GST regime.
Noting that both the central and state governments are pooling their sovereignty to have this tax regime, Jaitley had noted that India, despite being one political entity, remained different economic entities with states having different taxes. Tabling the bill, Jaitley said that there has been an attempt to introduce a one taxation system for years.
"One nation-one tax - it's only a myth", Moily said, referring to the multiple tax slabs under the proposal.More news: Coast Guard seizes $420M in cocaine from Canadian boats
Both Congress and Left questioned that with surrendering powers to legislate on tax is the Parliament and state assemblies losing its sovereignty.
Another mirror legislation of CGST, called State-GST, will amalgamate all state taxes like VAT, will be levied by states and has to be approved by all state legislatures.
"We are not opposed to the GST taxation but the manner in which the Bill has been presented is absolutely retrograde", he said. "To make a compensation package of Rs 50,000, we would have to levy tax of Rs 1.72 lakh crore".
"The hard work put in by GST Council members and officers bore fruits today in terms of 4 classic pieces of legislation passed by the Lok Sabha", Revenue Secretary Hasmukh Adhia tweeted later.
GST bill has been adopted in the lower house and various MPs are bringing the amendments, following the debate.
- The highest tax, of 28%, will be imposed on items such as luxury cars, pan masala, tobacco and aerated drinks.
He also told the members to raise the issue of the farmers' distress and press for a farm loan waiver in Parliament.