The Goods and Services Tax (GST) will be implemented from July 1 as all states have reached a consensus regarding the date of implementation, informed Economic Affairs Secretary Shaktikanta Das.
"GST should be implemented by 1 July. All states have agreed (on the date)," Das said.
The implementation of GST will address the problem of cascading taxes and establish one of the biggest single markets of the world.
To enable the smooth implementation of GST, the government has planned to get the GST Council's approval on iGST (integrated GST), cGST (central GST) and sGST (state GST) drafts before the budget session begins on 9 March. The first two bills have to be passed by Parliament while sGST will have to be passed by state legislatures.
It also needs to be noted that the draft compensation bill which is also part of the enabling laws under the GST constitutional amendment has already been approved in the Council's February 18 meeting. The Council has also cleared the final draft of the anti-profiteering clause which would ensure that benefit of lower taxes gets shared with consumers.
The last step before the implementation of GST will be to slot all the commodities under the GST tax slabs: 5 percent, 12 percent, 18 percent and 28 percent.