The indirect tax regime that will subsume all other taxes is on the path to miss its initial deadline of April 1. Speaking to media persons, he said GST will replace a variety of consumption taxes and could be a “game changer” and help to boost India’s competitiveness, investment and job creation.
Earlier, the GST Council had cleared certain provisions of key legislations at its 10th meeting. For final clearance, the Council will again take up model GST laws at its next meeting scheduled for March 4 and 5.
The draft bill over compensation to states too was cleared at the same meeting. The compensation law provides a formula for revenue sharing between the Centre and the states.
Earlier, headed by Finance Minister Arun Jaitley, the council had stated that due to GST implementation, states will be compensated for a period of five years for loss of revenue.
Once the council approves Integrated GST, Central GST, the government will prepare a model GST bill to present in the later phase of Budget Session.
Jaitley said, “We have resolved most critical issues. Legislations were drafted. Two weeks ago, the first draft has been cleared. By early March, the second draft will come up. Parliament will be summing-up the issue from March 9. Despite nascent problems, the GST, the biggest tax reform since Independence will serve to be an efficient tax system.”