State finance ministers will deliberate on the model GST law at a two-day meeting in Kolkata on June 14 and 15 and will discuss the model GST law, which will be adopted by the Centre and all states, with hope that pending GST bill will get passed in Rajya Sabha in the next Parliament session. Union Finance Minister Arun Jaitley too will participate in the Empowered Committee of State Finance Ministers and will try to iron out differences over the new regime that will include all indirect taxes and create one national market under the GST.
Once the Constitution Amendment Bill to roll out GST is passed by the Parliament, the Centre and states will have to adopt their own laws to give effect to the new indirect tax regime. The Central GST will be framed based on the model GST law. The states will draft their own State GST based on the draft model law with minor variations incorporating state-based exemptions. Besides these two laws, the Centre and states will have to approve the integrated-GST law, which will deal with inter-state movement of goods.
The government has proposed to take up the GST Constitution Amendment Bill in the Rajya Sabha in the forthcoming monsoon session of the Parliament. The Centre is planning to roll out the indirect tax from the next financial year beginning April 1, 2017.
