The Rajya Sabha on Thursday passed the Goods & Services Tax Bill. Earlier in March, Lok Sabha had passed the GST bill
The Rajya Sabha on Thursday passed the Goods & Services Tax Bill. Finance Minister Arun Jaitley on Thursday reflected on the Goods and Service Tax bill being passed in the Rajya Sabha and said that the government will give a final approval to the rules and rates on May 17-18 and hoped that the law could be implemented as planned on July 1. Jaitley also went on Twitter and said that the GST would transform states and union territories into one market which would be administered by a GST council. He added that GST would herald an era of cooperative federalism and said that it would bring efficiency and transparency in tax administration. Union Minister Piyush Goyal also reflected on the GST bills and said that they had become a reality now, whereas it was inconceivable a few months ago. He congratulated the nation on the historic passing of the GST. BJP MP Rajeev Chandrasekhar also congratulated the country and said that it was the biggest Indirect tax reform in the country.Former Prime Minister Manmohan Singh also expressed his happiness at the passing of the GST bill saying that it could be a game changer but he could not assume that there would be no difficulties on the way.
#GST legislations passed by RS will bring efficiency & transparency in tax administration.
— Arun Jaitley (@arunjaitley) April 6, 2017
Earlier in March, Lok Sabha had passed the GST bill. Finance Minister Arun Jaitley had then addressed the house after the Lok Sabha had passed all the 4 supplementary laws. Jaitley had significant step forward had been taken by the central government in this regard.
Passing of GST a historic move. Could be a game changer: Former PM Dr ManMohan Singh pic.twitter.com/kp18kljE0O
— Supriya Bhardwaj (@Supriya23bh) April 6, 2017
The GST bill was introduced to the house a The Constitution Act 2016 would subsume various other taxes like central excise, service tax, VAT among other taxes, creating a uniform market all over the country. Earlier in the day, Lok Sabha had passed a bill that sought to include warehouse as one of the custom areas so that the importers are not made to pay the IGST during the removal of goods from a custom station to warehouse.
The 4 bills passed are the Central GST, the Integrated GST, the UTGST and the GST Compensation. The CGST would deal with central government imposed taxation, IGST would be dealing with the taxation involved in the moving of goods and services between states. While the UTGST would take care of taxes in Union Territories. Meanwhile, the compensation bill has been prepared as a legal promise to all the states that the Centre would compensate them fully for their losses for the next 5 years after the bill becomes law and gets implemented. Finance Minister Arun Jaitley had said that the primary objective of the GST was to have one tax in the country, which opens up new markets and opportunities. The government had plans to pass the bill in both houses in this session of the parliament for a possible July implementation.