GST: Launch on 01 July 2017

Jai Jalarambapa and Jai Ganpatibapa

Time and again, Modi Government has been gradually making headway towards its goal of implementing GST with effect from July 01, 2017. India's biggest tax reform took another key step forward with crucial legislation related to the goods and services tax being introduced in Parliament ahead of the government's plan to roll it out across the country by July 01, 2017.

Four Bills viz. IGST, CGST, SGST and UTGST have been introduced before the Lok Sabha on March 27, 2017 and will be taken up by the House today. The GST Council decided on a four-tier tax structure of 5%, 12%, 18% and 28% to cover most goods and services. Besides, a cess will be levied on demerit and luxury goods on top of the peak rate to create a fund, the proceeds of which will be utilized to compensate states for revenue losses on account of the GST rollout.

The GST Council, comprising Jaitley and his state counterparts, approved the four bills over 12 meetings. The Council will meet again on March 31to finalise the rules and formats for the new indirect tax regime.