Union Finance Minister Arun Jaitley today introduced four landmark Bills on the Goods & Services Tax (GST) in the Parliament.
The legislation will unify federal and state taxes like factory gate duties, customs, services tax and sales tax.
The bills were introduced as money bills in the Lok Sabha, which means the Rajya Sabha can debate on them but its vote was not binding for their passage. A 2.5 per cent tax is prescribed for suppliers.
The four bills moved in the lower house of Parliament are the Central Goods and Services Tax (CGST) Bill, Integrated Goods and Services Tax (IGST) Bill, the Goods and Services Tax (Compensation to States) Bill and the Union Territory Goods and Services Tax (UT-GST) Bill.
The law provides for arrest, ordered by no less than a Tax Commissioner, in case of suppression of any transaction or evading taxes.
The 40 per cent would be apportioned equally between the Centre and the states.More news: Trump To Sign Order Easing Energy Regulations
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The compensation would be met through levy of a cess called "GST Compensation Cess" on luxury items and sin goods like tobacco, for the first five years.
The Speaker, forced to give a ruling by the Opposition, dismissed their objections, saying that the Bills were circulated to all MPs on Saturday morning and that she had now permitted the government to introduce these.
Minister of State for Parliamentary Affairs S S Ahluwalia said the bills were uploaded on the government website on the midnight of Friday.
Goods and Services Tax (GST), the biggest tax reform in India since Independence, is expected to boost the rate of economic growth by about 0.5 percentage points, broaden the revenue base and cut compliance cost for firms. "I have given the waiver".
Sources said the discussion on the GST laws could begin only by Tuesday. "This marks the successful culmination of a series of steps taken by the government since August 2016 and it now appears certain that India is headed for a GST rollout from July 2017".