The Draft GST model law was released on June 14, 2016.On Nov. 26, 2016 the CBEC has released the revised version of draft GST model law after considering the suggestions of the stakeholders. It has also released the draft law for compensating the States. The Central Govt. would compensate the States for the revenue loss in the first five years of GST implementation.
The Compensation payable to the States for any financial year would be the difference between actual revenue (i.e., SGST + apportioned IGST) and projected revenue. The GST compensation payable to a State shall be provisionally calculated and released at the end of every quarter, and shall be finally calculated for every financial year aer the receipt of final revenue figures, as audited by the CAG.
To fund this compensation, there would be a levy of GST compensation Cess on specified goods and services. However, no cess would be levied on assessees opting for composition scheme. We will shortly provide our viewers the detailed summary of new version of GST law.