LS Approves GST Bill: Key Points to Know

GST Bill Introduces a New Article 246A

The bill introduces Article 246A to facilitate the legislation of GST by both Centre and State governments. Art 246A confers simultaneous powers to the parliament and the state legislatures to make laws with respect to GST although subject to some conditions.  

GST is the Umbrella Tax

Like mentioned above GST is a comprehensive tax. It subsumes the following Central and State taxes—

Central taxes like Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty (CVD) and Special Additional Duty of Customs (SAD), etc. will be subsumed in GST. At the State level, taxes like VAT/Sales Tax, Central Sales Tax, Entertainment Tax, Octroi and Entry Tax, Purchase Tax and Luxury Tax, etc. would be subsumed in GST.

The proposed bill will also do away with the concept of special importance. And the Centre will levy an additional one percent tax on the supply of goods in inter-State trade, which will go to the States for two years or till when the GST Council decides.

Also Read:LS Approves GST Bill, Paves Way For Uniform Tax Regime
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