President Pranab Mukherjee on Thursday gave his assent to four supporting legislations related to the Goods and Services Tax Bill after both Houses of Parliament passed it during the Budget Session that came to an end on Wednesday. The four legislations – The Central GST Act, 2017, The Integrated GST Act, 2017, The GST (Compensation to States) Act, 2017, and The Union Territory GST Act, 2017 – had been passed by the Rajya Sabha on April 6 and the Lok Sabha on March 29.
With the president’s assent, the GST scheme can be rolled out from July 1 this year. The new tax regime seeks to bring in a single tax rate to replace India’s complicated current rules, which include central excise duty, service tax, additional customs duties, value added tax, entertainment tax and so on. It will replace 17 indirect levies.
The Centre believes the GST will help create a unified market in the country, avoiding double taxation and increase compliance. The GST will have a central component and a state component, which both forms of government will administer at their levels.