Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: articles on VAT and GST in India :: VAT RATES :: ACCOUNTING STANDARD :: TDS :: form 3cd :: list of goods taxed at 4% :: empanelment :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: VAT Audit :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
 
 
« Service Tax »
 India’s E-Service Tax Will Add To Foreign Content Providers’ Woes
 GST Council to discuss model laws, tax jurisdiction today
 Tax Invoice Under GST
 Insurance may fall under 12% tax slab in GST, from 14% service tax currently
 GST draft makes it must for companies to pass tax benefit to consumers
 To speed passage, Government plans GST Bills as money Bills
 No service tax on train tickets booked through IRCTC till December 31
 GST Council meet postponed to December
 Banks integrating systems with RBI, GST Network to collect tax: Arun Jaitleya
 Service tax waived for online train ticket booking till Dec 31
 Key challenges in implementation of Goods and Services Tax

New Cabinet-Approved GST Bill drops 1% Inter-State Sales Tax
July, 28th 2016

The cabinet today cleared changes in the GST Constitutional Amendment Bill, dropping the 1% manufacturing tax and and guaranteeing compensation for any revenue losses states may experience in the first five years of rolling out the proposed indirect tax scheme.

The cabinet, headed by Prime Minister Narendra Modi, decided that the GST Council will adjudicate any disputes that arise between the Centre and states. To this end, the council will have representatives from both the Centre and the states. Since the cabinet and states approve of the amendments, the government is hopeful that the amended GST Bill will pass in the ongoing monsoon session of parliament, which ends on August 12.

The GST Bill, with the changes approved by the cabinet, could come up in the Rajya Sabha as early as this week, but certainly by next week. The changes approved by the cabinet are to the Constitutional Amendment Bill that was approved by the Lok Sabha in August last year. Once the Rajya Sabha approves the legislation, the amended Bill will have to go back to the Lok Sabha again for approval. “The amendments to the GST Constitutional Amendment Bill have been cleared,” a top official said after a Union Cabinet meeting, which was chaired by Modi.

The amendments were taken up by the Cabinet after finance minister Arun Jaitley‘s assurance to states’ finance ministers that the Bill will include a mechanism of compensating states for all the revenue lost for five years. The Bill, in its present form, provides that the Centre will give 100% compensation to states for the first three years, 75% and 50% for the next two years.

However, the report from the Select Committee of the Rajya Sabha originally recommended 100% compensation for probable loss of revenue for five years. As per the amendments, the Centre will now constitutionally guarantee states any loss of revenue from the GST subsuming all indirect taxes, including VAT, in the first five years of introduction. By doing away with the 1% inter-state tax over and above the GST rate, the government has met one of the three key demands that the Congress made to block the Bill in the Upper House.

The other demands of including GST rate in the statute and a Supreme Court judge-headed dispute resolution body have not been accepted. It remains to be seen if Congress will support the Bill after these partial changes. There is a talk of mentioning the GST rate in one of the two supporting legislations that need to be passed after the Constitution is amended, a move that may pacify the Congress.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Desktop Application Development Outsourcing Desktop Application Development Offshore Desk

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions