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.

2006-07 || This budget, for the first time, set a roadmap for a systemic tax overhaul by 2010. The reform billed as the most ambitious in independent India, was eventually rolled out seven years after the first target date. Which reform is this? Ans: Goods and Services Tax
2006-07 || This budget, for the first time, set a roadmap for a systemic tax overhaul by 2010. The reform billed as the most ambitious in independent India, was eventually rolled out seven years after the first target date. Which reform is this? Ans: Goods and Services Tax

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?

 

Read Moneycontrol's full coverage on GST here

tags #Economy #GST

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