Final GST bill push in Lok Sabha: Here's what all we know about the revised drafts
Aiming for a 1 July rollout of GST, the government hopes to build a consensus amongst all the parties in the current session of parliament
All eyes will be on the Lok Sabha today, as the BJP-led NDA government at the Centre and other political parties will be holding a marathon debate on the country's biggest tax reform called the Goods and Services tax (GST).
The government has already tabled four bills - the Compensation Law, the Central-GST or C-GST, integrated-GST or I-GST and Union Territory-GST or UT-GST - in the Lok Sabha on Monday.
Aiming for a 1 July rollout of GST, the government hopes to build a consensus amongst all the parties in the current session of parliament.
Here are the revised draft bills on GST that will come for discussion in Lok Sabha today.
Land lease, rentals to attract GST: Come July 1 and leasing of land, renting of buildings as well as EMIs paid for purchase of under-construction houses will start attracting the Goods and Services Tax. Sale of land and buildings will be however out of the purview of GST, the new indirect tax regime. Such transactions will continue to attract the stamp duty, according to the legislations Finance Minister Arun Jaitley introduced in the Lok Sabha yesterday for approval.
Also, any lease or letting out of the building, including a commercial, industrial or residential complex for business or commerce, either wholly or partly, is a supply of services as per the CGST bill.
Electricity duty: Since the GST Constitution Amendment Act does not provide for subsuming 'electricity duty' under GST, it will continue to be levied by the respective state governments.
Certain states like Delhi exempt residential properties from electricity duty but levy it on commercial and industrial units.
Employee amenities may attract GST: In this case, an employee getting free goods or services over his stipulated sum may come under the ambit of GST. Also, an employee uses a company asset for personal use, it might trigger GST, The Times of India report said. However, any gifts not above Rs 50,000 in value in a financial year given by an employer to his employee will not treated as supply of goods and services.
Input tax credit denied: The final bill suggests that input tax credit will not be available for number of facilities provided to employees like free or subsidised food and beverages at the workplace, sponsorship of club or fitness centres membership, cab facilities, group life and health insurance, the TOI report added.
Cap on cess for demerit goods: The GST Council has decided to cap the cess on several sin and luxury goods in the legislation. The council has put a cap on cess on colas and luxury cars at 15 percent, indicating that total tax on sugary drinks and cars will not exceed 43 percent i.e. 28 percent tax rate plus cess of 15 percent. However, with regards to cigarettes and chewing tobacco, the less could be either 290 percent or Rs 4,170 per thousand stocks or a combination of both, Mint report said.
Tax treatment on SEZ times: The GST Council has said it will make the tax treatment on items produced in special ecnomic zones (SEZs) similar to that on export as against earlier draft that said SEZs would have to pay the tax and then claim a refund.
Petroleum Products may Come Under GST: The government has pitched for petroleum products to be included in the purview of the Goods and Services Tax. Finance Minister Arun Jaitley had said last week that petroleum products, which will be within the purview of GST, slated to be implemented from 1 July, would, however, continue to be taxed as per the current taxation regime until the GST Council agrees on applying GST to these products.
Residual GST compensation fund: The Centre will have a greater share of the residual amount in the compensation fund at the end of the 5-year period as the GST Bill now provides for equal sharing of the amount as against the earlier formula which favoured states. According to the Goods and Services Tax (Compensation to States) Bill, as introduced in the Lok Sabha today, they will receive provisional compensation bi-monthly from the Centre for loss of revenue from implementation of GST. The draft law had provided for payment of compensation every quarter.
Speaking at a condolence meet for the principal of a Eidgah government school who was shot dead by militants on 7 October, Abdullah said the people of Kashmir have to be courageous and fight the killers together
To fight against Indira Gandhi’s government, Jayaprakash Narayan led the JP Movement from 1974 to 1975 which was initiated by students to fight corruption and misrule