The Uttar Pradesh cabinet today gave its assent to a draft bill for implementation of the Goods and Services Tax in the state and the proposed legislation will now be tabled in the Assembly during the session commencing on May 15.
After the Bill is passed by the assembly, where the BJP has a three-fourths majority, Uttar Pradesh will join states like Uttarakhand, Jharkhand, Telangana, Bihar and Rajasthan whose legislatures have given their nod to GST. The Uttarakhand Assembly passed the bill today.
The Narendra Modi government is keen on rolling out GST from July 1.
"The cabinet has approved the State Goods and Services Tax Bill, 2017 and it will be passed by the state assembly in the session commencing May 15," UP minister Suresh Kumar Khanna said.
After the new tax regime is implemented, revenue of the state is likely to increase, he said.
"If there is any burden on the state exchequer due to the implementation of GST, the government will meet it for next five years. Petroleum products will not be covered under GST," Khanna said.
Four key GST legislations -- the Central GST Act, the Integrated GST Act, the GST (Compensation to States) Act and the Union Territory GST Act -- were passed by Parliament in its last session.
The four legislations, which have since got the President's assent, aim to pave the way for the roll out of GST from July 1.
Seen as a path breaking step in the taxation regime, GST is expected to lead to a congenial and cohesive atmosphere for business in India.
Different indirect taxes like the central excise duty, central sales tax and service tax are to be merged with tthe C-GST while S-GST will subsume state sales tax, VAT, luxury tax and entertainment tax.
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