Moneycontrol
Jul 01, 2017 04:54 AM IST | Source: Moneycontrol.com

GST: 11 years, three governments, three FMs

The government plans to introduce GST from July 1, 2017, more than 11 years after a formal process to introduce it began.

GST: 11 years, three governments, three FMs

The GST Council on Friday approved the tax rates on services and most categories of goods.

GST promises to stitch together a common national market by replacing a string of central and local levies such as excise, value added tax, octroi, service tax.

The government plans to introduce GST from July 1, 2017, more than 11 years after a formal process to introduce it began.

Here’s a look back at how GST, independent India’s biggest reform initiative, has reached the final leg:

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2006 - FM P Chidambaram moots GST in the Budget Speech for 2006-07.

2008 - Empowered Committee of State Finance Ministers (EC) engaged.

2009 - EC releases its First Discussion Paper

2011 - FM Pranab Mukherjee introduces Constitution Amendment Bill on GST in Lok Sabha

2013, August- Parliamentary Standing Committee submits report on GST; recommendations incorporated in the Bill

2013, September - Revised Bill sent to EC for consideration

2014, March - Another revised Bill drafted incorporating recommendations of EC.

2014, Dec - FM Arun Jaitley introduces Constitution Amendment Bill for GST in Lok Sabha.

2015, May - LS Passes Constitution Amendment Bill for GST.

2015, Aug - Congress insists on capping GST rate at 18 percent; opposes 1 percent “entry” tax to protect manufacturing states as it distorts the system.

2016, July - Centre and states agree against capping GST rate in the Constitution amendment Bill.

2016, Aug - Parliament passes 122nd Constitution Amendment Bill for GST; clause on entry tax dropped; states assured of full compensation for potential revenue loss upto five years.

2016, October 18 - GST Council decides on a compensation formula for states for revenue loss.

2016, October 26 - FM Arun Jaitley writes blog favouring four-tiered GST tax structure.

2016, November 03 - GST Council agrees on a four-slab structure –5, 12, 18 and 28 percent—along with a cess on luxury and `sin’ goods such as tobacco.

2016, November 04 - GST Council meeting inconclusive as Centre, states fail to agree on GST administrative issue on “dual control”

2016, November 12 - GST Council fails to agree on CGST and SGST laws

2016, Dec 23 - Agreement on two laws in GST Council meeting, but “dual control” remains a thorny issue.

2017, Jan 03 - States want compensation corpus raised from Rs 55,000 crore to Rs 90,000 crore to soothe demonetisation pain; new roadblocks surface on taxation rights of goods transported through territorial waters.

2017, Jan 04 - No breakthrough in GST Council meeting, hopes hinge on Jan 16 meeting to break impasse; roll-out date pushed till July 1.

2017, Jan 16 - Centre and states agree on two thorny issues of “dual control” and taxing rights of goods moved through high seas.

2017, Feb 18 - GST Council finalizes draft Compensation Bill.

2017, Mar 4- GST Council approves CGST and IGST) Bills.

2017, Mar 16 - GST Council State GST Bill and the UT GST Bills.

2017, Mar 20 - Union Cabinet approves CGST, IGST, UT GST and Compensation Bills.

2017, March 27 - FM Arun Jaitley introduces CGST, IGST, UT GST

2017, March 29 - Lok Sabha passes five GST bills.

2017, March 31 - GST Council approves five sets of rules involving registration, payment, refund, invoices and returns.

2017, May 18 - GST Council meets in Srinagar; approves tax rates for 1211 items; approves another four sets of rules relating to composition, valuation, ITC (input tax credit) and the transition process.

2017, May 19 - GST Council places services under four slabs—5,12,18,28 percent.

2017, June 03 - GST rate of gold fixed at 3 percent; footwear placed in two tax slabs—5 percent for footwear less than Rs 500 and 18 percent for more.

2017, June 11 - GST Council reduces tax rates on 66 items including ketchups, instant food mixes, pickles, tractor components, computer printers and insulin among others; announces a two-part entertainment tax for cinema. Movie tickets costing Rs 100 or below will attract a GST rate of 18 percent, while those priced at above Rs 100 will be taxed at 28 percent.

2017, June 18 - GST Council extends deadline for the first set of returns; lotteries to be taxed at 28 and 12 percent; relief for hotels as 28 percent rate will apply for room tariffs above Rs 7,500 a night.

2017, June 20 - FM Arun Jaitley announces plans for a midnight event in Parliament’s central hall on June 30 to roll out goods and services tax (GST).

2017, June 30 | July 1 - A midnight event in Parliament’s central hall marked the switchover to GST.

Decoding: What does GST mean for you?

 

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