The cabinet has cleared four GST-related bills that will be introduced by finance minister Arun Jaitley in Parliament with the government saying the new tax regime is “likely to be implemented“ from July.The bills are expected to be introduced in Parliament later this week.
While four legislations -Central GST, Integrated GST, Union Territory GST and the Compensation Bill -need to be enacted by the Centre, every state legislature needs to enact the State GST law. Last week, all the draft bills were cleared by the GST Council, which comprises Union and state finance ministers and is vested with powers to decide on all issues related to the new regime.
Apart from doing away with a plethora of indirect taxes and cesses by merging them into a single levy. The GST would mitigate cascading or double taxation and pave the way for a common national market. Some studies have also estimated that GST will boost the nation's GDP by 1-2%.