GST Compensation Bill gets nod; IGST, CGST and SGST Laws will be taken up in next meeting on 4th-5th March - 2017// MONARCH
GST Compensation Bill gets the formal nod
Prospects of Goods and Services Tax (“GST”)
becoming a reality from July 1, 2017, brightened further with the GST
Council clearing the legally vetted draft of the GST Compensation Bill,
in its 10th meeting, held on February 18th 2017 at Udaipur.
The GST Compensation Bill seeks to stipulate the manner in which States
will be compensated in the event of a loss arising in the first five
years, due to the implementation of GST.
“The GST compensation law, that
if a state has a loss, then for the first five years they will be
compensated, the legally vetted draft has been formally approved by the
GST Council…It will go before the Cabinet, which will give its approval
and we will seek to place it before Parliament in the second half of the
Budget session starting on March 9”, Mr. Jaitley said during a press conference.
IGST, CGST and SGST on agenda in next meeting on March 4-5
The GST Council is now expected to
approve three other laws viz. IGST, CGST and SGST, when it meets on
March 4-5, paving the way for the legislations to be brought to
Parliament by around March 9 i.e. in second leg of the Budget session.
The Finance Minister said that the
vetting of the legal language of the CGST, SGST, and IGST laws raised a
few issues that needed to be clarified to the legal committee of the GST
Council.
Some of the issues included the
eligibility of membership to the appeal tribunals in the Centre and
States, the delegation of powers, the exemptions that can be given
during the transition phase, the treatment of work contracts where
Service tax and VAT is applied, and issues related to the definition of
agriculture.
