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Centre plans to bring GST bills as money bills for smooth passage

Currently reading: Centre plans to bring GST bills as money bills for smooth passage
India TV Business Desk, New Delhi [Published on:23 Nov 2016, 20:00:41]

The Centre is planning to introduce three bills related to the Goods and Services Tax (GST) as money bills to ensure they are not stuck in the Rajya Sabha where the ruling NDA does not have a majority. 

The government needs to pass three bills – the Central GST Bill; the Integrated GST; and GST (Compensation for Loss of Revenue) – for the rollout of the new tax regime.  

The move is in disregard to Congress’s demand wich sought their introduction as financial bills. The introduction of the GST bills as money bills means these are required to be voted only in Lok Sabha where the ruling party has a clear majority. 

On November 10, the Lok Sabha had listed the three bills for introduction, consideration and passing in the Winter Session of Parliament. 

A source, quoted by PTI, said that Centre is on track to introduce the legislations in the ongoing session of Parliament, which ends on December 16.  

The Centre had on November 16 circulated the draft legislation among states. The officers' committee of both the Centre and states in their meeting on November 21-22 discussed the issue, with states giving their views.  

Meanwhile, the GST Council meeting, scheduled for November 25, has been postponed to December 2-3 with several states suggesting changes in the model GST law and compensation formula.  

The officers committee, however, will meet on November 25 to finalise the three draft legislations -- CGST, IGST and compensation law. These will be placed in public domain for stakeholders' comments.  

Sources said that since the legal changes in the draft laws would take some time, it was decided to postpone the November 25 meeting of the all-powerful GST Council.  

"The states have suggested certain changes relating to returns procedures in model GST law. Also, they have asked for changes in wordings in compensation law. We will finalise the three draft laws at the November 25 meeting," a source said.  

The officers committee would not discuss the issue of cross empowerment to avoid dual control as it would be decided at the ministerial level.  

The Central GST (CGST) will be framed based on the model GST law. The IGST law would deal with inter-state movement of goods and services.  

Also, the states will draft their own State GST (SGST) based on the draft model law with minor variations incorporating state-based exemption. 

These laws deal with returns, registration and refund process as well as where GST will be levied. 

The compensation law will list out how states will be compensated in the initial five years for revenue loss on account of GST rollout. 

The Centre plans to create a Rs 50,000 crore fund for GST compensation by levying cess on demerit and luxury goods. 

At its last meeting, the GST Council agreed on a four-slab structure 5, 12, 18 and 28 per cent along with a cess on luxury and 'sin' goods such as tobacco.

Centre, GST bills, money bills, GST, Arun Jaitley- India Tv
The Centre is planning to introduce GST-related bill as money bills Photo: PTI