The Lok Sabha on Monday passed the 122nd Constitution Amendment Bill or the GST Bill unanimously. All 443 members present in the Lok Sabha voted in favour of the bill. The bill now goes to states for ratification.
The Lok Sabha on Monday passed the 122nd Constitution Amendment Bill or the GST Bill unanimously. All 443 members present in the Lok Sabha voted in favour of the bill. The bill now goes to states for ratification. Protesting against the bill AIADMK members walked out of Lok Sabha ahead of the vote. GST, which was first proposed a decade back, now needs ratification of 16 states. After it is approved by state assemblies, three more laws Central GST, Integrated GST and State GST will be drafted by the GST Council. While the CGST and IGST will have to be passed by the Parliament, states will have to pass their individual SGST law.
Once it becomes an Act, the GST will subsume various taxes including excise, services tax, octroi and other levies, the proceeds of which will be shared between Centre and states. Experts say that GST has the potential to transform India’s economy; once implemented it can add as much as 2 percentage points to the GDP while also improving the ease of doing business and encourage investment in manufacturing. Speaking in the Lok Sabha, Prime Minister Narendra Modi said that the Goods and Services Tax will help lower instances of corruption and black money. PM Modi said that the GST will aid drive to end end corruption in the country. “GST will root out black money, will push all toward transparent billing,” added PM.
Finance Minister Arun Jaitley, while moving the amendments to the GST bill cleared by the Rajya Sabha, said that it is an enabling law and 18 per cent cap on GST was suggested by the Congress when the bill was passed in the Lok Sabha and later tabled in the Rajya Sabha.