Rajasthan government will soon pass the most awaited tax regime, state goods and services tax (SGST) Bill. Rajasthan will become the one of the two states to have passed the indirect tax regime in the country.
Quite recently, Telangana passed the SGST bill, thereby contributing to the mandatory exercise which will precede the final rollout of the GST bill on July 1.
A special session of legislative assembly will be convened in the coming days for the purpose of passing the SGST bill. At this meeting, Rajasthan State Goods and Services Bill 2017 will be placed for it’s final approval.
This approval will engender the grant of crucial powers for the implementation of GST. In the session, officials will discuss the methods and parameters to be taken into consideration for levying GST on all products. Even the different slab rates for different products will be discussed. Notably, GST will not be applicable on liquor and petroleum products.
“With the approval of draft GST bill on March 31, Centre asked states to pass the state GST Bill in respective legislatures. Following the Centre’s request, Rajasthan government is ratifying the bill. With new law in place, all tax laws related to VAT, entertainment tax, entry tax of goods, luxury tax, etc., will be subsumed,” said an official of the finance department.
According to the official, a sample draft was sent by the Centre and states were asked to make necessary changes keeping its soul intact.
The Centre was highly appreciative of the fact that Rajasthan had developed a model draft of SGST. It was prepared as an effective draft which was considered as appropriate for other states to follow. “Ministry of finance is impressed with the language we have used and has asked other states to use it as a model or replicate it in their assemblies,” added the official.