Finance minister Arun Jaitley on Saturday said that the Goods and Services Tax (GST) Council has cleared the draft compensation law -- one of the four enabling laws under the GST constitutional amendment.
The minister also said he hoped that the drafts of the remaining iGST (integrated GST) and cGST (central GST) laws will be passed in the Council’s next meeting slated for March 4-5 in the national capital.
“The GST’s compensation law states that if any state suffers loss it will be covered in first five years. Its legally vetted draft came before the Council and was the first law formally passed,” Jaitley said here at a press conference.
“In the Budget Session’s second half, all enabling laws under the GST constitutional amendment should get approved,” he added.
The government is keen to roll out the new regime from July 1 but for that, it will have to get two laws - the Central GST (CGST) Act and Integrated GST (IGST) Act -- approved by Parliament and each of the state legislatives have to pass the State GST (SGST) Act.
The model GST law provides a common draft of CGST Act, SGST Act. Besides, there is an IGST law and Compensation law.