Pranab Mukherjee, President of India, today has cleared all the four Goods and Service Tax, which were passed by the Parliament.
The bill has been through various procedures. It was passed in the Lok Sabha on 29th March and to Rajya Sabha on 6th of April. Cabinet ministry of Narendra Modi approved the bill on 20th March.
The four bills on GST were Central GST, Integrated GST, Union Territory GST and The Compensation to the States Law.
Central-GST Bill is a tax applicable for the imposition and collection of tax on the goods or services exchanged within the state. The tax will be imposed by Central Government.
Integrated-GST Bill is a tax applicable for the imposition and collection of tax on the goods or services exchanged inter-state. The tax will be imposed by Central Government.
UT-GST bill is a tax applicable for the imposition and collection of tax within the Union Territory without legislature. The tax will be imposed by State or Union Territories.
Compensation Bill is a bill, which render compensation to the states for the loss incurred because of implementation od goods and service tax for a time span of five years. It is under the section 18of the Constitution Act, 2016.
Union Finance Minister Arun Jaitley says that the main objective of GST is to simplify the process of tax and make it a single process. Also, under GST, there will be a single rate of tax on a commodity.
In a 29day long Budget session of Parliament, The lower house that is Lok Sabha passed 24 bills whereas the upper house that is Rajya Sabha has passed 14 bills.