GST rollout likely on July 1 as Centre, states reach consensus on key bills

Mangalore Today News Network

New Delhi, Mar 04, 2017: The Centre and states agreed on Saturday on two bills crucial to triggering a Goods and Services Tax, virtually clearing the path for a July 1 rollout of the country’s biggest tax reforms since Independence.

After the 11th GST Council meeting, Finance Minister Arun Jaitley said the council approved the two legislation -- the Central GST and Integrated GST bills –- to replace excise duty and service tax with the GST.

The bills, which will pave the way for four tax slabs, will now have to be approved by Parliament and ratified by states.

“July 1 looks possible for the rollout of GST,” Jaitley told reporters after the meeting.

“The applied rates will be 5%, 12%, 18% and 28%. The cap will be higher,” he said without elaborating on the higher limit. States want the higher limit at 40%.

The GST bills are likely to be taken up as money bills in Parliament during the second half of the Budget session starting March 9.

Jaitley said the GST Council will again meet on March 15-16 to clear some smaller issues.

The GST Council is headed by Jaitley and include state finance ministers.

On Saturday, the GST Council took up the legally vetted drafts for all important bills.

The Narendra Modi government is eager to implement the GST, which has already missed several deadlines because of lack of political consensus.

The proposed tax regime will create a unified, common market that will help lower the tax burden, shore up revenues of the Centre and states, temper inflation and step up economic growth by 1-2 percentage points in the medium term, analysts say.