A senior finance ministry official stated that Model GST rule which is presently being scrutinized by the law department is anticipated to concluded by February month end. The model law will surface the way for rolling out of the Goods and Services Tax (GST) from 1st July 2017. CBEC (Central Board of Indirect Taxes ) member Mr. Ram Tirath said that “We are very close to finalisation of law and the Model law will be finalised by the end of this month
Further Mr. Tirath added that presently, Model CGST and SGST law are being scrutinized by the law ministry, Model GST laws consists of IGST is expected to be listed in the Parliament in the second leg of the Budget meeting starting on 9 March.
CGST will include central taxes of excise, service tax and central sales tax while IGST is to be applied on movement of goods and services from one state to another.
The GST Council has made four-tier structure of 5 per cent, 12 per cent, 18 per cent and 28 per cent as GST levy.State Goods and Service Tax (SGST) is to be passed by the States as well. Further, GST Compensation Act requires to be accepted by the Parliament to afford for compensation to states that lose revenue from implementation of GST in initial five years.