NEW DELHI (TIP): Parliament on April 6 passed four GST-related bills, paving the way for the new indirect tax to be implemented nationwide.

Parliament passed four GST-related bills on April 6 with the Rajya Sabha’s support, bringing the new tax reform closer to being implemented nationwide in July

The bills were supported by the Rajya Sabha without any amendments, and follows after the Lower House passed them last week. They will now be presented before the President for his consent, following which, states will pass another legislation, readying the country for a uniform Goods and Services Tax (GST).

The four bills are the Central Goods and Services Tax Bill (CGST), the Integrated Goods and Services Tax Bill (IGST) the Goods and Services Tax (Compensation to States) Bill and the Union Territory Goods and Services Tax Bill (UTGST).

The CGST will give powers to the Centre to charge a tax after levies of excise, service tax and additional customs duty is subsumed. The IGST will be a tax to be levied by the Centre on inter-state movement of goods and services. Besides, GST compensation law allows for imposition of cess on certain luxury goods like tobacco, high-end cars and aerated drinks to create a fund for compensating states for any loss of revenue in the first five years after implementing the new indirect tax.

The UTGST is for UTs like Chandigarh and Daman and Diu which do not have assemblies.

The State GST or SGST law that will allow them to levy sales tax after levies like VAT are subsumed.

“The broad approach of every member has been to support the legislation. Even the Constitutional Amendment Bill was supported overwhelmingly,” finance minister Arun Jaitley said while summing up the debate at the Upper House.

“Not only did both the Houses of Parliament support the GST bills, all the states have arrived at a consensus,” he added. In the backdrop of a reconciliatory mood, Rajya Sabha members showed consensus that the new indirect tax is the biggest reform since Independence and is the need of the hour. But still, concerns were raised about the sweeping powers of the GST council, the GST network and the GST rates. Allegations were also levelled against BJP trying to steal all credit of implementing this landmark tax reform.

CPI-M’s Sitaram Yechury was among the many MPs who raised the issue of the overarching power that the GST council. “The proposals before GST council should also come before the Parliament,” he said. In the new tax regime, this council will be the highest decision making body; this led to many Opposition members claiming that this provision takes away from the Parliament’s authority. Highlighting the federal structure of the Council, Jaitley said 32 representatives from the Centre and states are finalising the GST rules.

“We have had 14 meetings at the GST Council…and arrived at a consensus on all issues,” he said, adding there has been no voting on any issue.

“Mr Jaitley is only giving final touches to a reform that was set rolling many years ago by his predecessors,” said Congress MP Jairam Ramesh.

Congress’ Kapil Sibal and CPI’s D Raja raised concerns about data privacy under a private company in-charge of the IT backbone of GST or the GST-N.