09 September 2016 Current Affairs: President Pranab Mukherjee gave his assent to the Constitution 122nd Amendment) (GST) Bill, 2014 as per Article 111 of Constitution of India on 8 September 2016. With this assent, the bill becomes law and allows rolling out a new indirect tax regime.
After the Presidential assent, the bill will be notified to the Goods and Services Tax (GST) Council that will decide the tax rate, cess and surcharges. The council to be headed by Union Finance Minister Arun Jaitley will comprise of state Finance Ministers.
Now, the union and state governments will have to draft the Central GST, State GST and integrated GST laws for being passed in the winter session of the Parliament. The CGST and IGST will be drafted on the basis of the model GST law.
On the other hand, the states will draft their respective GST (SGST) laws with minor variation, incorporating State-based exemptions. The IGST law would deal with inter-State movement of goods and services.
Goods and Services Tax : The GST is a single indirect tax, which will subsume most of the Central and State taxes such as the Value Added Tax (VAT), excise duty, service tax, central sales tax, additional customs duty and special additional duty of customs.