Home / Knowledge / News / Textiles / GST Council approves CGST and IGST bills
GST Council approves CGST and IGST bills
Mar '17
The Goods and Services Tax (GST) Council has approved the draft Central GST (CGST) bill and the draft Integrated GST (IGST) bill vetted by the Union law ministry at the recently held meeting chaired by finance minister Arun Jaitley. This clears the deck for the Centre to take these two bills to Parliament for their passage in the ongoing Budget Session.

According to the approved bills, a state-wise single registration will be introduced for a taxpayer for filing returns, paying taxes and to fulfil other compliance requirements. Most of the compliance requirements would be fulfilled online. A taxpayer has to file one single return state-wise to report all his supplies, whether made within or outside the state or exported out of the country and pay applicable taxes on them.

A business entity with an annual turnover of up to Rs 20 lakh would not be required to take registration in the GST regime, unless it voluntarily chooses to do so to be a part of the input tax credit (ITC) chain. The annual turnover threshold in the Special Category States for not taking registration is Rs 10 lakh. A business entity with turnover up to Rs 50 lakh can avail the benefit of a composition scheme under which it has to pay a much lower rate of tax and has to fulfil very minimal compliance requirements.

In order to prevent cascading of taxes, ITC would be admissible on all goods and services used in the course or furtherance of business, except on a few items listed in the law. The ITC entitlement arising out of taxes paid under the Central law can be cross-utilised for payment of taxes under the laws of the states or Union territories.

In the services sector, the existing mechanism of Input Service Distributor (ISD) under the service tax law has been retained to allow the flow of ITC in respect of input services within a legal entity. To prevent lock-in of capital of exporters, a provision has been made to refund, within 7 days of filing the application for refund by an exporter, 90 per cent of the claimed amount on a provisional basis.

In order to ensure a single administrative interface for taxpayers, a provision has been made to authorise officers of the tax administrations of the Centre and the states to exercise the powers conferred under all acts.

Detailed transitional provisions have also been provided to ensure migration of existing taxpayers and seamless transfer of unutilised ITC in the GST regime. An anti-profiteering provision has been incorporated in the bills to ensure that the reduction of tax incidence is passed on to the consumers. Commissioner has been empowered to allow payment of taxes in instalments to mitigate any financial hardship being suffered by a taxpayer.

The State GST (SGST) Bill and the Union territory GST (UTGST) Bill, which would be almost a replica of the CGST Act, would be taken-up for approval after their legal vetting in the next meeting scheduled on March 16. (KD)

Fibre2Fashion News Desk – India

Interviews View All

Pratik Bachkaniwala, Palod Himson Machines

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Top executives, Textile industry, India

Top executives
Textile industry, India

The event should be organised every year

Neel Sawhney, One Friday

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Fabio Grandis,

Fabio Grandis

Italian company Grandis SRL has been operating in the textile industry for ...

Tina Antoniades,

Tina Antoniades

India-headquartered Lulu & Sky is a rapidly escalating brand with the...

Marcel Moser,

Marcel Moser

Switzerland-based Benninger is a leading manufacturer of technologically...

Steve McCullough & Marco Weichert, Functional Fabric Fair & Design and Development GmbH Textile Consult respectively

Steve McCullough & Marco Weichert
Functional Fabric Fair & Design and Development GmbH Textile Consult respectively

Functional Fabric Fair is a trade-exclusive event showcasing the latest...

S Ziya Gumuser, Teknomelt

S Ziya Gumuser

Turkish nonwoven manufacturer Teknomelt has been around for only seven...

Kai Poehler, Voith Paper GmbH & Co. KG

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Bani Batra,

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Sailesh Singhania, Sailesh Singhania Label

Sailesh Singhania
Sailesh Singhania Label

The Sailesh Singhania label was created to promote handwoven sarees and...

Hemant & Nandita, Hemant & Nandita

Hemant & Nandita
Hemant & Nandita

The designer duo of Hemant & Nandita are known for being inspired by...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

November 2019

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

Follow us on instagram


Follow Fibre2Fashion On

Advanced Search