GST BILL .

[SHIVKUMAR SHARMA]

Dear Readers,

Its a big day for all of us!!

Goods and Services Tax finally got the green signal to run on your life track.

After years of deliberation, the GST, touted as the biggest tax reform in Indian history since independence, has finally seen the light of day.


The Rajya Sabha today overwhelmingly passed the 122nd Constitution Amendment Bill to facilitate rollout of the Goods and Services Tax (GST) in the country with 203 votes in favour and none against, after a seven-hour debate during which a rare bonhomie was witnessed among the ruling and the opposition parties.

The GST Bill is aimed at bringing uniform tax regime in the country by subsuming state levies. Under it, a single rate of GST will replace Central Excise, State VAT, entertainment, entry and luxury taxes to ensure seamless transfer of goods and services.

WHAT NEXT!!!!

Now, the Bill will again go to the Lok Sabha and then ratified by at least 50 per cent of the states Legislative Assemblies, to become a law.

WHAT OUR FINANCIAL MINISTER SAY ABOUT IT!!

Replying to over six hour long debate on the Bill, Finance Minister Arun Jaitley said the government will try for the most reasonable rate for GST.

He said with GST, system will become more efficient and there will be no tax on tax and evasion will become more difficult. He also dismissed the apprehension of members that Centre will have veto power in the proposed GST Council saying it would have only one third weightage in it.

AI Summary

Goods and Services Tax rollout requires parliamentary and state ratification and formation of a council to set rates.
The constitutional amendment enabling the Goods and Services Tax establishes a unified indirect tax by subsuming central and state levies; enactment requires further parliamentary consideration, ratification by at least half of State Legislative Assemblies, presidential assent, and formation of the GST Council to determine rates. Implementation depends on passage of separate enabling statutes for the central, integrated and state components (CGST, IGST, and SGST) and coordinated state participation to operationalise the uniform tax framework.