NEW DELHI, March 20 India's cabinet has approved
four bills to implement a planned Goods and Services Tax (GST)
bills, a government official said on Monday, paving the way for
Prime Minister Narendra Modi to implement the landmark tax
reform from July.
The four bills are likely to be taken up by the parliament
this week, and a separate state GST bill in state assemblies
later, the official also said, requesting anonymity ahead of a
planned news briefing.
The GST Council, comprising federal and state finance
ministers, has already cleared all five draft laws - the Central
GST, Integrated GST, state GST, Union territory GST and rules on
compensating states for revenue losses.
There would be four tax slabs of 5, 12, 18 and 28 percent,
plus a levy on taxes on items like cars, aerated drinks and
tobacco products to compensate states for any revenue losses in
the first five years.
The new tax, biggest tax reform since India got independence
in 1947 from the British colonial rule, is expected to boost the
rate of economic growth by about 0.5 percentage points, broaden
the revenue base and cut compliance cost for firms.
(Reporting by Nigam Prusty; Writing by Manoj Kumar; Editing by