The Union Cabinet
chaired by the Prime Minister Shri Narendra Modi has approved the
following four GST related bills:
1. The Central Goods and Services Tax Bill 2017 (The CGST Bill)
2. The Integrated Goods and Services Tax Bill 2017 (The IGST Bill)
3. The Union Territory Goods and Services Tax Bill 2017 (The UTGST Bill)
4. The Goods and Services Tax (Compensation to the States) Bill 2017
(The Compensation Bill)
The above four Bills have been earlier approved by the GST Council after
thorough, clause by clause, discussion over 12 meetings of the Council
held in the last six months.
The CGST Bill makes provisions for levy and collection of tax on
intra-state supply of goods or services for both by the Central
Government. On the other hand, IGST Bill makes provisions for levy and
collection of tax on inter-state supply of goods or services or both by
the Central Government.
The UTGST Bill makes provisions for levy on collection of tax on intra-UT
supply of goods and services in the Union Territories without
legislature. Union Territory GST is akin to States Goods and Services
Tax (SGST) which shall be levied and collected by the States/Union
Territories on intra-state supply of goods or services or both.
The Compensation Bill provides for compensation to the states for loss
of revenue arising on account of implementation of the goods and
services tax for a period of five years as per section 18 of the
Constitution (One Hundred and First Amendment) Act, 2016.
The Government is committed to early introduction of GST, one of the
biggest reforms, in the country as early as possible. GST Council has
decided 1st July as the date of commencement of GST. The Finance
Minister in his Budget Speech has mentioned that country-wide outreach
efforts will be made to explain the provisions of GST to Trade and