Maharashtra Cabinet approved the State Goods and Services Tax (SGST) draft bill, having provision to provide financial security to local bodies in state and protecting their autonomy. The decision was taken in the weekly cabinet meeting chaired by Chief Minister Devendra Fadnavis in Mumbai.
According to a release from the CM’s office, the sugarcane purchase tax, Central Sales tax, entry tax on vehicles, entry tax on goods, lottery tax, forest produce tax, betting tax, octroi and local bodies tax will be scrapped, after the State GST comes into force. The local bodies will be provided with compensation.
A statement of object has also been specifically mentioned in the bill. The state government will also assign some of its taxes to the local bodies.
According to the release, the bill also ensures that there is no compromise on the Mumbai civic body’s financial autonomy.A special three-day session of the state legislature has been convened for the passage of the SGST bill on May 20.
