REVIEW ON Lok Sabha assent in hand, Modi sarkar races ahead to roll out GST

[Policy]

Lok Sabha has passed the Central GST Bill 2017 (CGST Bill), Integrated GST Bill
2017 (IGST Bill), Union Territory GST Bill 2017 (UTGST Bill) and the GST
(Compensation to the States) Bill 2017 (Compensation Bill) tabled in the Parliament.
The GST bills introduced as money bills, will ensure a smooth passage through the
Rajya Sabha. The state assemblies will need to pass the State GST bills (SGST). The
GST council will soon decide detailed GST rules and rates of individual goods.
The GST has replaced more than a dozen central and state taxes or Value Added Tax
(VAT) with an aim to create a seamless unified market for the $2 trillion Indian
economy. The GST just like demonetization, is a step to help reduce the costs for
the common man. There are a lot of grey areas to be covered and rules taxes modified
as we move along. The important thing is the first step which the government has
taken.
The earlier government has thought of this implementation too, but they didnt
implement it like the current government. The ax now collected will be equally
divided among the Centre and the states. This implementation is not ruled in Jammu
and Kashmir.
Now that the government has brought GST into the picture, it is seen that it will
replace multiple taxes at the central and state level, which will therefore result in the
peak growth of Indias market value. Before its implementation, a lot of discussion
had taken place in the Parliament. According to Mr. Jaitely, it was a significant step
that has been taken by the government. He also said that the approval of GST is a
milestone in the economic history of the country.
The four parts of legislation provide a peak tax rate of about 40%. The government
has already set up the working groups to take up the issued face by various sectors
of people involved into business or industries.
The law has provided a composition scheme for turnover below 50 lakh rupees under
which the manufacturers will be charged as 1% CGST, 1% SGST, restaurants
2.5% CGST, 2.5% SGST and other supplies: 0.5% CGST, 0.5% SGST. This is done
to reduce the compliance burden for small and medium enterprises. This whole was
implemented only after the approval was granted by one and all in a series of 12
meetings.