The Central Goods and Services Tax Act, 2017
Administered Ministry: Ministry of Finance / Department of Revenue
Act details
| Short title | The Central Goods and Services Tax Act, 2017 |
|---|---|
| Long title | An Act to make a provision for levy and collection of tax on intra-State supply of goods or services or both by the Central Government and for matters connected therewith or incidental thereto. |
| Act number | 12 of 2017 |
| Act year | 2017 |
| Enactment date | 12 Apr 2017 |
| Ministry | Ministry of Finance / Department of Revenue |
| Department | Department of Revenue |
| Jurisdiction | Central (Parliament of India) |
| Sections | 188 |
| Schedules | 3 |
| Status | Not repealed |
| Last checked on India Code | 28 Oct 2026 |
| Source | India Code, Government of India |
Summary
Summary of the Central Goods and Services Tax Act, 2017
1. Enactment & Purpose: Enacted in 2017 to establish a uniform Goods and Services Tax (GST) across India, replacing multiple indirect taxes.
2. Key Definitions
• Council: Goods and Services Tax Council.
• Supply Types & Concepts: Exempt Supply, Deemed Exports, Electronic Commerce, etc.
• Tax & Financial Concepts: Input Tax, Output Tax, Electronic Credit/Cash Ledger.
3. Provisions Overview: - Taxation: Uniform GST rates for goods and services.
• Registration & Compliance: Mandatory registration, tax invoices, returns.
• Input Tax Credit (ITC): Mechanism for tax credit on inputs.
• Offences & Penalties: Defined for non-compliance.
4. Integration with Other Acts: - Integrated Goods and Services Tax Act, 2017: For inter-state supplies.
• State Goods and Services Tax Acts: For intra-state supplies.
• Union Territory Goods and Services Tax Act, 2017: For Union Territories.
Legislative history
Legislative History:
The Central Goods and Services Tax Act, 2017
Short Title The Central Goods and Services Tax Act, 2017
Act Number / Year Act No. 12 of 2017
India Code Act ID 201712
Presidential Assent Date April 12, 2017
Enforcement Date June 22, 2017 (for preliminary/registration provisions vide S.O. 1972(E)); July 1, 2017 (for full operational levy and collections vide S.O. 2068(E))
Nodal Ministry Ministry of Finance
Precedent & Statutory Rationale
1. Unification of Indirect Tax Architecture ("One Nation, One Tax"):
o Enacted pursuant to the historic Constitution (One Hundred and First Amendment) Act, 2016, which inserted Article 246A to grant simultaneous taxation powers to Parliament and State Legislatures. The Act replaced a fragmented indirect tax system with a unified central tax framework on the intra-State supply of goods and services.
2. Elimination of Tax Cascading & Seamless Input Tax Credit (ITC):
o Established a comprehensive statutory framework for levying tax at every stage of the supply chain while allowing registered taxpayers to claim an Input Tax Credit (ITC) on taxes paid on inputs, thereby removing the "tax-on-tax" cascading effect.
3. Cooperative Federalism & GST Council Consensus:
o Functionally anchored in the decisions of the GST Council (established under Article 279A of the Constitution), ensuring that legislative rules, tax slabs, threshold exemptions, and compliance mechanics are harmonized across the Union and the States.
Parliamentary Trajectory & Enactment
• Formulation: Drafted under the guidance of the GST Council chaired by Union Finance Minister Arun Jaitley, with representation from Finance Ministers of all States and Union Territories.
• Parliamentary Passage: Introduced in the Lok Sabha as a Money Bill on March 27, 2017; debated and passed by the Lok Sabha on March 29, 2017; returned without amendments by the Rajya Sabha on April 6, 2017.
• Presidential Assent: Received formal Presidential Assent on April 12, 2017, entering the statute book as Act No. 12 of 2017.
• Enforcement: Phased rollout commencing June 22, 2017 (for registration and procedural sections) and coming into full operational force nationwide on July 1, 2017.
• Source: India Code Official Repository and Ministry of Finance (Department of Revenue / CBIC) Official Records