Complete GST lifecycle on one platform Complete GST lifecycle on one platform
Hyper-automation Hyper-automation
Smart reports & recon Smart reports & recon
Accurate filing Accurate filing
Request a Demo

Model GST Law – Final version from the month end

Updated on: Jul 21st, 2021


4 min read


The country is gearing up for the implementation of the Goods and Services Tax from July, but the nuances of the GST law are yet to be set in stone. The law department has been looking at the provisions of the GST, and states have been mulling over it as well, increasing delays.

However, a senior member of the finance ministry in Delhi said today that the model law could be finalised by the end of this month.Currently, the law ministry is in the process of vetting the model GST and the SGST, after which the final decision will be taken by the GST council on February 18. If all goes well, the model GST law could then be tabled in the Parliament during the Budget Session starting March 9. This would include both SGST and IGST.

The way forward

Once the model GST law is finalised and tabled in the Parliament, states will have to pass an SGST which will be charged on the movement of goods across state boundaries. The Parliament will also have to approve a GST Compensation Act which will help states earn back the revenue they might lose in taxes by implementing SGST for the first five years. A four-tier structure for taxes has already been decided by the council, with taxes calculated at 5 per cent, 12 per cent, 18 per cent and 28 per cent. However, the levy for various goods and services should be finalised by May or June.

How does this impact businesses?

Here’s an in-depth report on the various taxes under GST, which will help you understand the regime better. Under the GST model, 3 taxes will be implemented to help tax-payers to take credit against each other thus ensuring “One nation one tax”. While intra-state movement of goods will be charged under the SGST (State GST) and the CGST (Central GST), the inter-state movement of goods will be taxed under the IGST.

IGST will also impact imports. It is expected that this three-tax structure will make it easier for states to conduct businesses, as from now on they will only have to deal with the centre in the matter of taxes and not with every other state involved in the transaction. Dealers and businesses who have pan-India concerns should find this new tax regime to their benefit. To know more about GST, do read our blogs here. We would love to help you be GST-ready! Some of the key points that should be kept in mind are:

  • Get your enrollment done on time. To read more about the enrollment process and its relevance, Click here.
  • Plan your logistics and warehousing requirement carefully. To read our detailed guide on impact analysis on logistics and warehousing, Click here.
  • Adopt such platforms, technologies which will enable your business to be GST-compliant. Click here to get all updates and access a pool of GST Calculators.
inline CTA
India’s Fastest and Most Advanced 2B Matching
Maximise ITC claims, use smart validations to correct your data and complete 2B matching in <1 minute

Public Discussion

Get involved!

Share your thoughts!


Quick Summary

India is preparing for the implementation of Goods and Services Tax (GST) in July. The model law is undergoing review and will be decided upon by the GST council on February 18. States need to pass an SGST, and the Parliament must approve a GST Compensation Act to help states recover lost revenue. The four-tier tax structure of 5%, 12%, 18%, and 28% is decided, with finalization expected by May or June.

Was this summary helpful?

Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

Cleartax is a product by Defmacro Software Pvt. Ltd.

Company PolicyTerms of use


ISO 27001

Data Center


SSL Certified Site

128-bit encryption