New Delhi: The Centre and states have completed the drafting of the model Goods and Services Tax law as well as an integrated GST or iGST law, which will be put up in the public domain by early November.
According to a Government official, the Empowered Committee of state Finance Ministers is likely to meet this month to discuss the legislations — CGST, SGST and iGST.
“The model GST law and iGST law have been circulated among the states. The Empowered Committee would meet soon to discuss them,” a senior official told PTI.
The Central GST (CGST) will be framed based on the model GST law. Also the states will draft their own State GST (SGST) based on the draft model law with minor variations incorporating state-based exemptions.
“Trade and Industry should also be a part of the law because ultimately they would pay the tax. Hence, their views are essential. The drafts will be put up on the website by the first week of November,” the official added.
The drafts of the proposed legislations are based on three principles — definitional clarity, certainty in assessment, and promoting ease of doing business, the official said.
The model GST law and iGST law have been drafted by officials of both the Centre and States, the official added.
Although the Government had planned to roll out the GST, which is touted as the most comprehensive indirect tax reform since Independence, from April 1, 2016, it seems difficult since the Constitution Amendment Bill is stuck in the Rajya Sabha, where the ruling NDA does not have a majority.
The Government is, however, going ahead with the preparatory work necessary for smooth implementation of the GST, which will subsume various levies such as excise, service tax, sales tax, and octroi and will ensure a single indirect tax regime for the entire country.
The Government has already put up three reports of the empowered committee on GST on refunds, payment process, and registration for public comments by October 31.
The date for the next meeting of the empowered committee has not been finalised yet. It was scheduled to meet last month but the meeting was deferred.