The Goods and Services Tax (GST) Council in its eleventh meeting on Saturday gave in-principle approval to the two key draft laws of Central GST (CGST) and Integrated GST (IGST). Final approval to these laws, along with the other two pending laws of State GST (SGST) and Union Territory (UTGST) are likely by March 16.
The government is expected to introduce the Bills, along with the compensation Bill that had been approved earlier, for clearance in the second half of Parliament’s Budget session.
The GST Council also expanded the coverage of composition scheme to restaurants with annual turnover up to Rs 50 lakh at the taxation rate of 5 per cent, apart from the earlier approved categories of traders and manufacturers.
“There were demands that restaurants should be included in composition scheme, particularly those with less turnover. So the Council decided that there would be a composition scheme for restaurants up to a turnover of Rs 50 lakh and the rate for them will be 5 per cent. Remaining restaurants will come in the regular service tax rate,” Revenue Secretary Hasmukh Adhia said.