The Rajya Sabha on Wednesday passed the (Goods and Services Tax) GST Bill, which is one of the most crucial indirect tax reforms in the history of India. Passage of The Constitution (122nd Ammendment) GST Bill in Parliament is being seen as a big victory for the Narendra Modi government. Speaking in the Upper House, Finance Minister Arun Jaitley said, “We will try for the most reasonable rate. With GST, system will become more efficient, there will be no tax on tax, evasion will become more difficult.” From Congress’ side senior leader and MP Anand Sharma said, “It would have been nice if it were acknowledged that UPA government’s concerns on GST were meant for good of nation.”
The proposed GST would subsume various central (Excise Duty, Additional Excise Duty, service tax, Countervailing, Special Additional Duty of Customs, etc.), as well as state-level indirect taxes (VAT/sales tax, octroi, purchase tax, entertainment tax, luxury tax, entry tax, etc). Thereby mitigating double taxation and creating one window for market operations. India Inc is hopeful that with the implementation of GST, the ease of doing business in India would be enhanced substantially. The indirect tax reform is also expected to add greatly to India’s GDP growth. We at FE.COM bring you live updates:
Also read | What is GST? Here’s a 10 point simple guide on Goods and Services Tax
10:oo pm: PM Modi thanks leaders and members of all parties on passage of GST Bill.
On this truly historic occasion of the passage of the GST Bill in the Rajya Sabha, I thank the leaders and members of all parties.
— Narendra Modi (@narendramodi) August 3, 2016
09:39 pm: Rajya Sabha passes historic GST Constitution Bill. Proceedings for the day conclude.
09:33 pm: India will become a common market, goods will move much faster: Shaktikanta Das
09:26 pm: Proud moment for all Indians, compliment Parliament and government of India: Uday Kotak
09:22 pm: GST will completely transform India’s tax structure: Shaktikanta Das (Secretary, Economic Affairs)
09.08 pm: GST Bill passed by Rajya Sabha. Total 197 of 197 MPs vote ‘YES’.
8.50 pm: Amendments on GST Bill being put to vote.
08.54 pm: Will fully comply with the Constitution, no intention to bypassing the Constitutions provisions: Arun Jaitley in RS
08.53 pm: The Govt needs to assure us that this GST bill will be a finance bill, not a money bill: GN Azad in RS
08.50 pm: Congress leader Ghulam Nabi Azad reiterates the demand of bringing the GST bill as Finance Bill.
08.45 pm: P Chidambaram reiterates the demand of bringing the GST bill as Finance Bill.
08.40 pm: AIADMK walks out of Rajya Sabha
08.35 pm: Arun Jaitley concludes his speech in Rajya Sabha
08.27 pm: I didn’t say its a wrong drafting, I said its a clumsy drafting: Chidambaram
08.15 pm: All the FM Ministers of the states were not willing to trust the centre in the year 2011: FM Arun Jaitley
08.12 pm: To implement GST is a headache for a finance minister, for a former finance minister it’s a luxury now: FM Arun Jaitley
08.08 pm: GST will bring three changes in principle: 1. System will be more efficient, 2. No cascading effect of tax on tax, 3. Lower or no tax on certain items, says Arun Jaitley in Rajya Sabha
08.04 pm: GST Council will make the recommendation to both Centre and States: Arun Jaitely
08.01 pm: India is not a confederation of states, it is a union of states: Arun Jaitley
07. 59 pm: Union is sovereign, states are also sovereign, we are experimenting a new idea where a ‘pooled sovereignity’ will come in: Arun Jaitely
07.57 pm: I think some clarity is required as to how the entire system will function: Arun Jaitley
07.55 pm: FM Arun Jaitley speaks on GST Bill in Rajya Sabha.
07.45 pm: Anand Sharma reiterates the demand of bill to be introduced as Finance Bill instead of Money Bill.
07.38 pm: We were not opposing GST on political grounds, we wanted GST but we wanted our concerns to be addressed: Anand Sharma
07.35 pm: PM Narendra Modi anchored GST opposing state when he was the CM of Gujarat. He said it will hurt federalism, his view changed when he became the Prime Minister: Anand Sharma
07.33 pm: Anand Sharma attacks PM Modi, says he anchored GST opposing states when he was Gujarat CM
07. 28 pm: The bill is introduced to create a common market in India, for free flow of goods and services: Anand Sharma
07.30 pm: There will be many challenges for Central and States in future: Anand Sharma
07.26 pm: The common goal for all should be that tax should increase without burdening the taxpayers: Anand Sharma
07. 24 pm: Important points is that how will be the tax distributed in coming times, says Sharma
07.22 pm: The bill has an special importance for country and people: Anand Sharma, INC, Himanchal Pradesh
07: 18 pm: Bodoland territorial coucil is running a parralel govt in Assam, the area has a population of 32 lakhs, the 6th schedule of constitution has provisions for this, What will be the financial status of these councils: Biswajit Daimary, BPF, Assam
07: 10 pm: The bill prominently focusses on manufacture centric states, while my state Haryana is an agriculture centric state. I want to know from the FM if my state will lose taxes after implementation of the bill: Ram Kumar Kashyap, INLD, Haryana
07:07 pm: I request finance minister to formulate a special strategy for the Mumbai city: Raut
07:05 pm: Mumbai pays a massive contribution to country’s economy, it is India’s finacial capital, Mumbai shouldn’t be strip off the funds: Raut
07:00 pm: Big cities like Mumbai should be paid special care, Mumbai Municipal Corporation in itself is like a government: Sanjay Raut, Shiv Sena, Maharashtra
06. 56 pm: I think GST Council it is in favour of the Union, weightage should be 3/4 in favour of states, 1/4 in the favour of Union. : D Raja
06. 54 pm: I believe that fiscal autonomy of the states will be taken away, how local body institution will be financed: D Raja
06. 52 pm: FM needs to explain further on the issue, how will be the fiscal federal structure will be maintained after implementation of GST: D Raja
06. 50 pm: Indirect Taxes should not be worsened after the implementation of GST, this should not affect tax payers: D Raja, CPI, Tamilnadu
06. 48 pm: I know Mr. FM you are going to face may challenges, I wish you all the luck, says Gujaral
06.45 pm: I disagree with my friends in Congress, high taxes never fetch votes, the bill is in everyone’s interest, says Naresh Gujaral, SAD, Punjab
06.40 pm: Implementation of GST will be positive for some of the port logistics players such as CONCOR, Gateway Distriparks and Allcargo Logistics as GST will lead to a realignment of warehousing and supply chain requirements of companies : K Ravichandran, Senior VP, Co-head, Corporate Sector ratings, ICRA
06.35 pm: My state Maharashtra stands to lose Rs. 15,000 cr annualy with implementation of GST, the central is bound to take care of this loss, spirit of cooperative federalism should be kept high: Anil Desai, Shiv Sena, Maharashtra
06.29 pm: If the PM can’t apologise, then Finance Minister should do that: Budania
06.27 pm: PM Modi opposed this bill when Congress brought it to this house, he should have the courage to apologise to the country: Narendra Budania, INC, Rajasthan
06.21 pm: There should be a fair and transparent mechanism to pay the compensation to states, so that the states will have a trust on Govt Of India: TKS Elangovan, DMK, Tamilnadu.
06. 19 pm: Currently Indian Revenue Services deal with taxation, we may soon need an entire new organisation to deal with GST, newly trained people: Gowda.
06.17 pm: Everyone is focusing at 18 per cent tax rate, but we are already at 15 per cent: Rajeev Gowda, INC, Karnataka.
06.11 pm: I request the Honorable Speaker to consider Andhra Pradesh in the GST list: V Vijaysai Reddy
06.10 pm: The loss arising due to the GST, should be dealt with proper methods, says V Vijaysai Reddy
05.56 pm: With the coming of this Bill, the states in our country will come together. GST will bring about a change in the way we have been functioning till now, says Mahesh Poddar, BJP
05.37 pm: The tax rate should be between 15-18%. We want a clarification on the revenue model, says Garikapati Mohan Rao, TDP in Rajya Sabha.
05.28 pm: This Bill will benefit a few sectors of the society. And hence, we support it. However, the important aspect is the tax rate, how much is the govt planning to levy from the common man, asks Surinder Singh Nagar, SP.
05.17 pm: I believe that the Bill takes into consideration the Union and the State relations. This govt has given a momentum to our economy. Inspite of having different ideologies, we have gathered here for the passage of this Bill which will bring development for this country, says Sancheti in Rajya Sabha.
05.15 pm: The passage of this Bill will ensure an uniformity in indirect taxes, making India a unified market, says Ajay Sancheti, BJP
05.13 pm: The bill must be treated as a Financial Bill and not Money bill. You are subsuming all state and Central taxes, this I believe will invoke dispute between the two. The revenue sharing model should be elaborated, says Tankha in Rajya Sabha
05.09 pm: It’s not only the state, but the people of India who want the rate. Exemption is an important part of this Bill, on which we need a better clarification from this Bill. Are they going to ta subsidies as well? asks Tankha in Rajya Sabha.
05.07 pm: In support of the indirect tax reform, Krishnapatnam Port says, GST Bill to reduce overall transportation and logistics costs.
05.05 pm: We support this Bill, but we need clarification on issues that would effect the public at large, says Vivek Tankha, INC
05.03 pm: In my opinion, a less than perfect GST is better than no GST. We have already missed our April 2016 deadline. Let’s try making it to 2017, says Chandresekhar.
04.58 pm: Reforming indirect taxes is very important. In support of GST, I would like to say that its is a significant reform which will create a large common market. It will lead to less corruption and red tape. Apart from creating transparency, it will make it easier for small businesses to function.
Thirdly, GST will become significant benefit to consumers, says Rajeev Chandresekhar in Rajya Sabha.
04: 50 pm: Narendra Jadhav: GST will reduce black money and tax evasion
04: 47 pm: As GST Bill was tabled in Rajya Sabha, these 34 stocks hit their fresh 52-week high on NSE
04: 45 pm: Praful Patel, NCP: Both at the central and the state level, the transition towards GST model will be challenging
04:43 pm: TDP: GST Bill will be good for the people of India
04: 40 pm: Sharad Yadav: After GST Bill, tax evasion and corruption will reduce
04: 37 pm: Chidambaram says Congress will support the GST Constitution amendment Bill.
Also read | As GST Bill tabled in Rajya Sabha, these 34 stocks hit their fresh 52-week high on NSE
04: 35 pm: Chidambaram: There can be no tax law in this country without a tax rate. Standard rate should be as low as possible
04: 30 pm: SC Misra, BSP: GST Bill takes away the power of states to amend laws which affects its people
04.07 pm: GST could impact the federal structure of the Constitution, says Yechury in Rajya Sabha.
03.59 pm: GST should leave some flexibility for the states, says Sitaram Yechury, CPI(M)
03.54 pm: I believe with the passage of GST, corruption will also come under control. However, we request you to not pose it as a Money Bill, says Sharad Yadav, JD(U)
03: 50 pm: Implement GST for the young Virat Kohlis of tomorrow: Derek O’Brien in Rajya Sabha
03.43 pm: We need to implement this on April 1, 2017. This ping-pong match cannot go on forever, remarks Derek O’Brien.
03.32 pm: GST could also be interpreted as Girgit Samjhota tax, says Derek O’Brien, TMC
03.30 pm: The proposal by the Central govt is unfair, illegal and we oppose it, says Navaneethakrishnan.
03.27 pm: How can the House pass this Bill withiut knowing the rate that will be levied consequently? asks Navaneethakrishnan
03.25 pm: The bill doesn’t take into account the diversity of India, says Navaneethakrishnan in Rajya Sabha.
03.20 pm: This Constitutional Bill is not valid. Because it violates fiscal autonomy. Due to this Bill, the state of Tamil Nadu is bound to suffer. We strongly oppose the bill, says A. Navaneethakrishnan, AIADMK
03.15 pm: What will be the rate levied on food products? Will GST rate be implemented on them at all or not? asks Naresh Agrawal, SP.
03.14 pm: There’s a very small sector that is opposing GST Bill. We want you to exempt businesses with more than Rs 10 lakh of turnover, says Agrawal.
03.10 pm: Don’t make it a Money Bill, it ought to be a Financial Bill, says Naresh Agrawal in Rajya Sabha
03.06 pm: Aapki niyat tax rat badhaane ki hai. NDA government is saying that we don’t want inflation in the country. Then why not set a low rate such as 18% now itself? asks Agrawal.
03.04 pm: We are supporting this Bill because we do not be blamed for being an obstruction in country’s progress, says Naresh Agrawal, SP
02.53 pm: By subsuming all taxes within one, we are promoting the ease of doing business and also the ease of friendliness, says Bhupendra Yadav, BJP
02.42 pm: I want an assurance from FM Jaitley, that when the Bill is brought the next time, it be brought as Financial bill and not Money Bill, says Chidambaram.
02.40 pm: Taxation is exclusive power of Parliament. Parliament must call the shots about such rates. We will in the meanwhile persuade all parties and people for a standard rate of 18%, says Chidambaram.
02.38 pm: In VAT, most goods suffer a low rate. If you increase to 23-24%, it would lead to evasion, tax evasion. I request the Finance Minister to keep the rate as low as possible, says Chidambaram.
02.34 pm: Rate can be changed only with the approval of the Parliament and not on the whim of the executive, says P Chidambaram.
02.33 pm: The standard rate must be 18%. That way it will not be inflationary. When we say cap the tax rate, we want to say the rate should not change by the whim of the executive.
02.30 pm: Over 80% of excise duties is between 12-14%. Over 56% of VAT is between 13-14%. GST is supposed to be an efficient tax. If it is captured by the state, the Centre won’t do it and vice versa.
02.28 pm: An indirect tax by definition is a regressive tax. so the trend is to keep them as low as possible, because be it the rich or the poor, they pay the same amount for it. For example, if a bottle of soft drink is bought, the excise duty on it is paid equally by the consumer, who might and might not be rich. It should be kept as low as possible.
02.27 pm: On the rate of tax, P Chidambaram says, the heart of the Bill is what this tax will be. It is not a matter between the union Finance Minister and the state finance ministers.
02.25 pm: I would urge the Finance Minister to strengthen the draft, it still has some clumsy pieces in it, says Chidambaram
02.20 pm: Rationale of GST is that we must avoid multiple taxes. We must avoid cascading effect, asserts Chidambaram.
02.18 pm: There are pieces of clumsy drafting in the Bill. For example, you have made some provisions as to what will go to the consolidated fund of India and what not. and this has come today in the form of an amendment. Revenue has to got to the consolidated fund of India. It cannot go nowhere, says Chidambaram.
02.15 pm: Congress party was never opposed to the idea of GST. Earlier we opposed, but it was the Bill that was opposed and no the idea of GST, says Chidambaram.
02.13 pm: Between 2011-14, I did a chaardham between my leader, leader of opposition and council of Finance Ministers, We tried to pass the GST bill with the principle party, we failed. And when this time the NDA govt tried to do it without the principle Opposition party, it too did fail, says P Chidambaram in Rajya Sabha
02.12 pm: Today, if we pass this GST bill, it will be on basis of serious discussions, serious debate and negotiations: P Chidambaram in Rajya Sabha
02.07 pm: This will empower the states, increase their revenue. It will bring down levels of evasion and also the cascading effect and is bound to give a boost to the economy, says FM Jaitley
02.05 pm: Consummable alcohol is not a part of GST, says FM Jaitley
02.01 pm: Through GST we wanted to subsume the different taxes prevailing between the state and Centre. This would make India a unified market: FM Arun Jaitley
01.58 pm: The govt had created an empowered committee of state finance ministers to discuss the Bill, which time to time gave suggestions for the Bill, says FM Jaitley in Rajya Sabha
01.56 pm: Rajya Sabha resumes. This is one the most significant tax reforms in the country, says FM Arun Jaitley
01.39 pm: Proposed AIADMK amendments:
2. 4% additional tax on inter-state trade must be given to the originating states.
01.31 pm: Talking about the effect of GST on e-commerce, Paytm said that it doubts any negative effects will be yielded by. However, tax structure for e-commerce is not clear as yet.
01.10 pm: Auto industry will benefit from the passage of GST. We are working towards double digit growth in the future and if GST is passed, it should give a good growth momentum. It will also ensure easy mobility across the state borders, says RS Kalsi, Executive Director Maruti Suzuki.
01.07 pm: Harsh Mariwala, Chariman Marico says that a lot is dependent on the roll out of the GST bill. A clarity is needed on GST Rate to measure the benefits for the sector.
01.00 pm: Sure, GST bill will be passed, Centre has assured that it will help states for the first 3 years in case of any loss, says Raman Singh, Chhattisgarh Chief Minister.
12.46 pm: ET Now reports, that AIADMK shall move 6 amendments to the GST Bill.
Also read | GST likely to get Rajya Sabha nod; homebuyers, real estate sector to gain
12.36 pm: GST Bill, if passed will simplify Indirect tax structure and will yield a positive impact on country’s GDP. We are working towards some strategic disinvestment this fiscal as there is a consensus view efficiency gains from GST bill. Fine tuning of GST needs to be done in future. We need to look at it as a part of larger package of government reforms, added Panagariya.
12.31 pm: First obstacle for the government is to get Constitutional Amendment Bill passed, says Arvind Panagariya, Vice Chairman NITI Aayog
12.04 pm: State governments must be compensated for any tax revenue loss post the passage of GST, added Mitra.
Also read | GST countdown begins; 18% rate to hit Ashok Leyland, Bharti Airtel, Parag Milk Foods among others
12.02 pm: Common people should be benefited from the tax reform. The GST rate should be such that it should help the common people, says Amit Mitra, West Bengal Finance Minister.
11.57 am: Mikhtar Abbas Naqvi, Union Minister of State for Minority Affairs tweets how it is an important day in the Rajya Sabha, as a ‘milestone’ GST is set to be tabled today.
GST will proved to be a “milestone” in ensuring “corruption-free & development oriented” economy. Historic day for Rajya Sabha today….
— Mukhtar Abbas Naqvi (@naqvimukhtar) August 3, 2016
11.55 am: Mahindra group expects vehicle prices to come down post GST: Pawan Goenka
11.53 am: GST will make India a transparent destination for doing business. It will have a major sentiment effect on foreign investors as well, says Forbes.
11.50 am: Naushad Forbes, Industry Chamber CII President in conversation with BTVI says, “GST is one of the biggest tax reform of all time. the credit for which goes to the government, Opposition, who are working towards it. If passed, GST will act as a dynamo of economic growth. Not just that, it will add 1.5-2% to the annual GDP growth.”
GST will ensure benefits from increased efficiency. However, some short-term spike in inflation might be observed, added Forbes.
11.38 am: Talking about the effect of GST on e-commerce with FE Online, Akshay Chaturvedi, CEO, Housefull.com says, GST is one welcome step in our country that will not only improve trasparency but also the ease of doing business. Easier movement of good across the country is a big plus of this long due bill.
11.34 am: Party’s stand is clear, how will you compensate loss that will be caused to BMC through the passage of GST? asks Sanjay Raut, Shiv Sena
11.19 am: Talking about GST, FM Jaitley says, that it will be rolled out only after 50% states approve it. However, we shall try to implement it as soon as possible as states won’t lose any revenue because of it.
11.11 am: GST Bill is a win-win situation or both manufacturing and consuming states, says FM Jaitley.
11.07 am: The BSE Sensex plunged over 200 points in early trade on account of selling in frontline blue chip counters amid a cautious approach ahead of GST debate in Upper House of Parliament.
11.00 am: Congress and the Left are onboard for the passage of GST, says FM Arun Jaitley. GST is an important tax reform, and if passed, India will become a significant economic entity and a common market post, added Jaitley.
10.59 am: Talking to CNBC-TV 18, Nirmala Sitharaman, Minister of State for the Ministry of Commerce & Industry says, country needs one market and GST will resolve all logistics related issues.
10.41 am: Uday Kotak, CEO, Kotak Mahindra Bank pitching in for the passage of the GST, tweeted in July that have acche din arrived?
India in sweet spot?Good monsoon, Brexit Blues behind, low oil. Things to watch US interest rates, GST, Fcnr redemption. Achhe din for real?
— Uday Kotak (@udaykotak) July 24, 2016
10.36 am: Speaking on the crucial GST, Adi Godrej, chairman of the Godrej Group said, “It will bring in 5% tax relief for FMCG sector. And it’s the biggest economic reform since 1991 liberalization.”
10.23 am: Praying for a smooth passage of the tax Bill, RC Bhargava, former CEO and current chairman of Maruti Suzuki said, “implementation of GST Bill will be a key. It will reduce tax evasion significantly”. While Sunil Munjal, Joint Managing Director Hero MotoCorp believes that the compensation clause of 5 years will make it easier for states to implement GST.
Sajjan Jindal, JSW Steel’s Managing Director & Chairman says, “GST will be a game changer and will also boost ease of doing business.”
10.13 am: Supporting the passage of GST Bill, Sachin Tendulkar tweeted that it is just a matter of time when ‘one tax’ will become a reality.
One nation one tax, making #GST a reality is just a matter of time! Look forward to #GST delivering the benefits.
— sachin tendulkar (@sachin_rt) August 2, 2016
9.00 am: In order to discuss the GST Bill, Congress Rajya Sabha strategy meet will be held at 10:15 am in the Parliament today.
8.50 am: It’s good, we should debate and pass GST today. But this ping-pong match between Congress and BJP, which has been going on for 10 years, says Derek O’Brien, TMC.
08.00 am: Anand Mahindra, Chairman and Managing Director, Mahindra Group while showing a support for the crucial GST Bill on Monday tweeted:
Without GST,India won’t harness its own ‘common market.’We’ve been in BREXIT mode without knowing it!Praying for smooth passage of the bill
— anand mahindra (@anandmahindra) August 1, 2016
While India Inc hopes for a successful passage of the Bill, they also assert that if passed, it will bring the biggest change in the country’s tax structure since Independence.
“While the government has left no stone unturned to seek a consensus, the willingness and maturity of the key opposition party in terms of understanding the issues and straightening out the differences is indeed praiseworthy. Industry can now think of ‘One India’, which was truly pursued by all political parties in true letter and spirit, and hopefully the Bill will see the light of the day on Wednesday,” said industry chamber CII President Naushad Forbes.