Lok Sabha finally passed the historic GST bills today. During the dabate on the bill, Union Finance Minister Arun Jaitley said that the government wants to pass these landmark tax reforms through consensus. Replying to the debate, he said the GST, will make commodities “slightly cheaper” in the country. Soon after the bill was passed, Prime Minister Narendra Modi congratulated the country on the passage of GST supplementary bills “Congratulations to all the countrymen over passage of the GST bills. New Year, New Law, New Bharat,” he said in a tweet.However The Congress objected to thwa way four GST-related bills were passed in Lok Sabha. It claimed that thwe bill was passed was in “contravention of Parliamentary sovereignty”, a report by PTI has said. “We support (GST) but the nuances and manner in which it (GST supporting laws) is passed is in contravention of Parliamentary sovereignty,” Congress senior leader M Veerappa Moily was quyoted to have said. Yesterday the FM had briefed the BJP MPs after party’s parliamentary party meeting. It has been learned that Jaitley in detail explained the four bills–Central GST, Integrated GST, Union Territory GST and the Compensation Law–to the MPs and how these legislations would be beneficial.
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10:40 PM: Union minister Smriti Irani also congratulated PM Narendra Modi and FM Arun Jaitley for passage of GST Bill in the Lok Sabha; said it paves the way for landmark One Nation-One Tax reform.
— Smriti Z Irani (@smritiirani) March 29, 2017
10:35 PM: Chief Minister Of Haryana, Manohar Lal Khattar, also congratulated the PM and finance minister. My heartiest congratulations to Hon’ble PM Shri Narendra Modi ji & FM Shri Arun Jaitley ji for getting GST Bill passed in Lok Sabha.”
— Manohar Lal (@mlkhattar) March 29, 2017
10:30 PM: Union Minister Ravi Shankar Prasad congratulated FM Arun Jaitley and entire GST team on passing of GST Bill in Lok Sabha.
— Ravi Shankar Prasad (@rsprasad) March 29, 2017
10: 25 PM: We will complete all bylaws on March 31, says FM Arun Jaitley.
10:17 PM: Home Minister Rajnath Singh took to Twitter and wished PM Modi and FM Jaitley on passage of GST Bill. In the tweet, he said, “With the adoption of GST Bill in Lok Sabha, India has taken a big step forward towards One nation, One Tax regime. Congratulations to PM & FM.”
With the adoption of GST Bill in Lok Sabha, India has taken a big step forward towards #OneNationOneTax regime. Congratulations to PM & FM
— Rajnath Singh (@rajnathsingh) March 29, 2017
10:11 PM: After the four supplementary GST bills passed in Lok Sabha, Home Minister Rajnath Singh said GST bill was an important bill and post implementation, undoubtedly it will increase the GDP of the country.
10:00 PM: FM Arun Jaitley congratulated representatives of all teh states and people of India for passage of GST Bill; says ‘One India, Excellent India.’
आज लोक सभा में एक राष्ट्र एक टैक्स क़ानून GST बिल पास हुआ l सभी राज्यों के प्रतिनिधियों को व देशवासियों को बधाई |एक भारत श्रेष्ठ भारत l
— Arun Jaitley (@arunjaitley) March 29, 2017
09:40 PM: After the passage of the Bill, Jaitley said he is reasonably optimistic about meeting the deadlines. The Finance Minister said, “With Lok Sabha having approved all four laws that Centre is supposed to legislate through Parliament, I think significant step forward has been taken. We are virtually seeing history in the making because we are now going to be transforming into a new system of indirect taxation.”
09:37 PM: We promised business people that at least three months before implementation (of GST Bill), you will have complete clarity on law and rules, says Revenue Secretary Hasmukh Adhia.
09: 23 PM: Revenue Secretary Hasmukh Adhia addressing a press conference on GST Bill.
09:20 PM: Prime Minister Narendra Modi congratulates the people of India for passage of GST supplementary bills by the Lok Sabha; says ‘New Year, New Law, New Bharat’.
GST बिल पास होने पर सभी देशवासियों को बधाई | नया साल, नया कानून, नया भारत!
— Narendra Modi (@narendramodi) March 29, 2017
08: 52 PM: House adjourned till 11am Thursday.
08:50 PM: All the four GST bills passed in Lok Sabha.
08:40 PM: Two of four GST bills – Central GST, Integrated GST- with amendments passed in Lok Sabha.
08:25 PM: Clause by clause voting on GST Bill amendments underway in Lok Sabha
08:10 PM: Decision to bring real estate within the GST ambit will be taken within one year of the rollout of the new indirect tax regime, says Finance Minister Arun Jaitley.
07: 35 PM: All the preparations to roll out the new tax regime is nearing completion and the process to classify categories of commodities will start next month, says Finance Minister Arun Jaitley.
05: 55 PM: Abhishek Rastogi (Partner), Khaitan & Co: The developments with respect to GST are going in the right direction and it looks that we are not too far from witnessing one of the biggest reforms of the country. From perusal of the bills, it is abundantly clear that the government will ensure timely tax payments/compliances and provide relevant benefits to the honest tax payers. The bills suggest that there will be benefits for consumers and MSMEs.
05:28 PM: The Finance Bill with amendment passed in Rajya Sabha
05:14 PM: Service by an employee to the employer in the course of employment is declared neither as supply of goods nor as supply of services. However, service by an employer to the employee in the course of employment, provided without any consideration, is liable to tax as a transaction is between two related parties. GST makes inroad in agriculture, absentee landlords would be liable to pay GST on rent received in cash or in kind as a share of crop: Dinesh Agrawal, Executive Director, Khaitan & Co
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4:33 pm: TMC MP Kalyan Banerjee suggested that the government should look into the GST models of other nations so that the legislation is implemented properly. Otherwise, the initiative may fail.
4:28 pm: Financial Bill will act as a cleanser in political funding, says FM Arun Jaitley.
4:25 pm: The government will issue electoral bonds, says FM Arun Jaitley.
4:23 pm: Congress MP Anand Sharma asked why electoral reforms be brought under the Finance Bill.
4:20 pm: FM Arun Jaitley emphasized that he will share information for calling a tax raid only with the ‘Courts’.
4:19 pm: Finance Bill protects the source of information for tax evasion, says FM Arun Jaitley.
4:17 pm: Reasons never given for raids, says FM Arun Jaitley.
4:16 PM: TMC MPs staged walk out protesting over Finance Bill.
4:15 pm: AIADMK MP Venkatesh Babu, however said, “the Tamil Nadu government is fully committed for successful implementation of GST”.
4:13 pm: Congress MP P. Chidambaram challenges FM Arun Jaitley over Finance Bill in Rajya Sabha.
4:10 pm: “There will be huge revenue loss to manufacturing states like Tamil Nadu. Some of our concerns were addressed while some are yet to be addressed,” Venkatesh Babu said.
4:05 pm: AIADMK member Venkatesh Babu termed the GST as the biggest tax reform initiative post independence but said there were many challenges in its proper implementation.
4:00 pm: Moily also slammed the Narendra Modi government for “high as well as too many taxes under the proposed GST system which he said does not reflect the original spirit behind the new tax regime.”
3:55 pm: “The one nation, one tax concept is only a myth. There are too many rates, cesses… What you brought today cannot be called a game changer but only a baby step,” said Moily.
3:50 pm: “Seven to eight years have passed after the erstwhile UPA government wanted to bring the GST bill. Some parties then felt it should be halted due to reasons best known to them,” Veerappa Moily said.
3:45 pm: Former Union Law Minister Veerappa Moily said due to the delay caused in the roll out of GST, the country lost around Rs 1.5 lakh crore annually and put the total loss at Rs 12 lakh crore.
3:40 pm: “Looking forward to a healthy & enriching debate on GST Bill in Lok Sabha. Passage of bill will be a step ahead in unification of tax regime,” the CM said.
3:36 pm: Check Out Madhya Pradesh Chief Minister Shivraj Singh Chouhan’s tweet
Looking forward to a healthy & enriching debate on #GSTBill in Lok Sabha. Passage of bill will be a step ahead in unification of tax regime.
— ShivrajSingh Chouhan (@ChouhanShivraj) March 29, 2017
3:30 pm: Congress MP Veerappa Moily blasted the Narendra Modi government saying that the upper house is the council of states, yet it has no right to discuss crucial bills.
3:15 pm: “The upper house is the council of states, yet it has no right to discuss crucial bills. This is an assault on federal structure – I say that all members of the Rajya Sabha must resign,” Moily said.
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2:45 PM: Watch this video
2:36 pm: The GST council will make recommendations to the Centre and the States on issues relating to the tax structure, says FM Jaitley. “It is a kind of federal contract with consensus,” he said.
2:30 pm: FM Jaitley said care will have to be taken to ensure that the various provisions in the GST bills are not misused.
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2:27 pm: The GST Council has already approved four-tier tax slabs of 5, 12, 18 and 28 per cent plus an additional cess on demerit goods like luxury cars, aerated drinks and tobacco products. The work on putting various goods and services in the different slabs is slated to begin next month.
2:16 pm: E-based taxation system has to be on-board, says TMC MP Kalyan Banerjee.
2:10 pm: A manufacturing state like Tamil Nadu will permanently lose revenue if GST is implemented, says T Venkatesh Babu of AIADMK.
2:02 PM: FM Jaitley also said the tax rates will be kept at the current levels so as not to have any inflationary impact.
2:00 pm: FM Jaitley said all decisions on GST would be taken by the GST Council, reflecting the federal structure.
1:58 pm: Besides, GST compensation law allows for imposition of cess on certain luxury goods like tobacco, high-end cars and aereated drinks to create a corpus for compensating states for any loss of revenue in the first five years of GST roll out.
1:54 pm: The fourth law introduced is on Union Territory GST or UTGST for UTs like Chandigarh and Daman and Diu which do not have assemblies.
1:50 pm: FM Jaitley said all decisions on GST would be taken by the GST Council, reflecting the federal structure.
1:47 pm: The CGST Bill makes provisions for levy and collection of tax on intra-state supply of goods or services, the integrated GST deals in taxation of inter-state movement of goods and services while the Union Territory GST Bill covers taxation in Union Territories.
1:45 pm: The compensation bill has been drafted to give a legislative backing to the Centre’s promise to compensate the states for five years for any revenue loss arising out of GST implementation.
1:39 pm: GST Bill is a game changer, don’t think a bigger bill than this has been passed before, says BJP MP Udit Raj.
1:38 PM: Watch this video
— ET NOW (@ETNOWlive) March 29, 2017
1:37 pm: GST will encourage and improve ease of doing business, Sudarshan Venu, Joint MD of TVS Motor, told ET Now.
1:31 pm: We should work towards GST deadline of 1 July, it will be a landmark, says Finance Secretary Ashok Lavasa.
1:30 pm: Rajya Sabha was undermined over GST Bills. All members should resign, says Congress MP Veerappa Moily.
1:28 pm: Hope GST will make things easy for the markets and economy, Naveen Jindal told ET Now.
1:27 pm: With GST, goods will cost the same at all places, says BJP MP Udit Raj.
1:25 pm: EY: The tabling of the bills in the Parliament is an important milestone in the process of implementation of GST.
EY: The GST bills address several issues arising from the revised draft of the Model GST Law released in November 2016, as highlighted by the industry.
EY: However, it cannot be denied that the GST framework continues to be fairly complex and the Government would need to mitigate genuine concerns of the industry. Therefore, a continuous, sympathetic and transparent engagement with trade and industry is imperative.
EY: There are several additional challenges that the taxpayer would need to handle, the key ones being tax treatment on transactions related to the state of Jammu and Kashmir, and compliances in relation to identification of procurements from unregistered persons.
EY: The proposed implementation date of July 1, 2017 now appears to be achievable and it is important that businesses get ready to embrace GST.
1:23 pm: A registered person procuring taxable goods or services from an unregistered person will be required to pay tax under reverse charge basis. This amendment is likely to have a massive impact on the compliance complexity for taxpayers as also on the competitiveness of unregistered entities.
1:22 pm: Central tax (i.e., CGST) will be levied on supply of petroleum crude, high-speed diesel (HSD), petrol, natural gas and aviation turbine fuel (ATF) from such date as may be notified by the Government on recommendation of the Council.
1:21 pm: CGST is applicable on intra-state supplies goods or services except on supply of alcoholic liquor for human consumption
1:20 pm: The CGST rate cap has been increased from 14% to 20%.
1:19 pm: As per Schedule I (dealing with supply made without consideration) read with section 7, gifts not exceeding Rs 50,000 in value in a financial year by an employer to an employee shall not be treated as supply of goods or services.
1:03 pm: GST increase red-tapism in state-to-state trade, says Moily.
1:02 pm: GST Bill is a transformative measure, says Moily.
1:01 pm: We have to rise above politics on the issue, says Moily.
1:00 pm: This is a very serious matter, just don’t take shelter under constitutional amendment, says Veerappa Moily.
12:59 pm: Entry tax is not clear with respect to merger of taxes with GST, says Veerappa Moily.
12:58 pm: What you have brought today is not a game changer but only a baby step, says Veerappa Moily.
12:57 pm: The tabling of the bills in the Parliament is an important milestone in the process of implementation of GST, says Jaitley.
12:55 PM: The proposed implementation date of July 1, 2017 now appears to be achievable and it is important that businesses get ready to embrace GST, says FM Arun Jaitley.
12:52 pm: The anti-profiteering clause of GST is far too draconian, says Congress MP Veerappa Moily.
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FM: Aim Of GST Council Is To Decide Everything With Consensus; Central GST Law To Integrate Tax On Goods & Services pic.twitter.com/9Qd0lxwX1L
— BTVI Live (@BTVI) March 29, 2017
12:48 pm: States have pooled in their sovereignty into the GST council, and Centre has done the same, says FM Jaitley.
12:47 pm: We have kept two standard rates of 12% & 18% and provided for a cess for 5 years to fund compensation, says FM Jaitley.
12:46 pm: To use cess on luxury, sin goods for GST compensation, says Jaitley.
12:36 pm: Aim of GST Council is to decide everything with consensus, says FM Jaitley.
12:35 pm: GST to ensure free movement of goods across the country, says Jaitley.
12:34 pm: It is a revolutionary bill which will benefit all, says FM Jaitley in Lok Sabha.
12:34 pm: CGST Law shall apply to the whole of India except the State of Jammu and Kashmir, says Jaitley.
12:32 pm: GST to ensure one single tax and will ensure free movement of goods across country
12:31 pm: GST Council met 12 times till now, FM Jaitley says.
12:30 pm: GST Council to have 32 representatives from States and Union Territories, says Arun Jaitley.
12:30 pm: The revised draft of the Model GST Law, which was released in the public domain in November 2016, has been split into CGST, SGST and UTGST Bills apart from IGST Bill. The draft of the Model GST Law underwent further changes before being introduced in the Parliament.
12:29 pm: The changes contained in the definitions, levy of tax, input tax credit, transitional provisions, zero rated supply and other provisions
12:28 pm: The bills introduced in Lok Sabha include Central GST (CGST), Integrated GST (IGST), Union Territory GST (UTGST) and the Bill for Compensation to States.
12:27 pm: The Bills were earlier cleared by the GST Council, followed by Union Cabinet approval.
12:25 pm: Watch Arun Jaitley speaking in Lok Sabha
WATCH Arun Jaitley speaking on GST bill in Lok Sabha https://t.co/huTN2YFebe
— ANI (@ANI_news) March 29, 2017
12:23 pm: PM Narendra Modi, top ministers attend GST Bill debate in Lok Sabha
12:20 pm: FM Jaitley moves four GST Bills for consideration In Lok Sabha
12:18 pm: The debate over GST bills has begun.
12:10 pm: The approval by Parliament and state assemblies to these laws will pave the way replacing the current patchwork of national, state and local levies with a single, unified value added tax system and integrating India as one market.
12:05 pm: The CGST bill will amalgamate all the indirect central government levies like sales tax, service tax, excise duty, additional customs duty (Countervailing Duty), special additional duty of customs, surcharges and cesses.
12:00 pm: The tax reforms, which aim to unify most federal and state taxes, are expected to boost economic growth by about 0.5 percentage points in its first year of implementation.
11:59 am: The government also hopes the new taxes will broaden its revenue base and cut compliance costs for companies.
11:57 am: FM Arun Jaitley said on Wednesday he was “reasonably hopeful” of rolling out Goods and Services Tax (GST) on July 1, 2017.
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11:55 am: The bills introduced by Finance Minister Arun Jaitley in Lok Sabha on Monday stated that they extend “to the whole of India except the state of Jammu and Kashmir.”
11:50 am: The Bill on Integrated-GST is for levy and collection by the Centre on inter-state supply of goods and services. The IGST law provides for a maximum tax of 40 per cent.
11:45 am: Actual rates would, however, be a four-tier tax structure of 5, 12, 18 and 28 per cent as approved by the GST Council. The peak rate of 40 per cent is only an enabling provision for financial emergencies.
11:40 am: CGST provides for a maximum tax of 20 per cent. A similar tax will be levied by states through a separate State-GST law.
11:30 am: The introduction of the four bills is a “concrete step toward implementation from July 1,” said Santosh Dalvi, partner, indirect tax, at KPMG in India.
11:25 am: However — apart from the classification of goods and services — companies are also seeking clarity on whether existing tax exemptions will continue and need enough time to prepare their technology and compliance structures, he said.
11:20 am: “But I think that’s going to be a temporary thing. Initially there’s going to be bumps on the road,” Subramanian said.
11:15 am: “It’s a massive tax change, administrative change at the center and the states, lots of procedures, processes, new forms, so there’s a huge implementation challenge,” Arvind Subramanian, Modi’s chief economic adviser, said Wednesday in a Bloomberg Television interview from Hong Kong.
11:10 am: While India’s on track to meet its deadline for a much-delayed national sales tax, implementation is seen as a test in the nation that has more states than the EU has members and a population twice that of North America, reports Bloomberg.
11:00 am: This is because Article 370 of the Constitution grants special autonomous status to the state and Parliament of India has power to make laws only on defence, external affairs and communication related matters of the state.
10:55 am: Jammu and Kashmir will have to pass special laws to be able to implement the Goods and Services Tax as its current Constitutional status does not mandate the applicability of the new indirect tax reform in the state.
10:50 am: While service tax is levied all over the country since 1994, it is not applicable in J&K. The state levies its own taxes for services provided in the state.
10:45 am: Watch this video
10:35 am: Certain states like Delhi exempt residential properties from electricity duty but levy it on commercial and industrial units.
10:30 am: Since the GST Constitution Amendment Act does not provide for subsuming ‘electricity duty’ under GST, it will continue to be levied by the respective state governments.
10:25 am: It will be a 7-hour long session.
10:20 am: GST debate is likely to start at 12 pm.
10:10 am: Experts said the GST subsumes central levies like excise and service tax and local levies like VAT, entertainment tax, luxury tax. However, it does not subsume Electricity Duty.
10:00 am: Experts said service tax is currently levied on payments made for under-construction residential houses after providing abatement, which brings down the effective rate from 18 per cent to around 6 per cent.
9:55 am: “The government is trying its best to make GST litigation free. The bills very clearly specify that GST would be charged on any lease of land or letting out of the building or construction of a complex, building, civil structure or a part thereof, where whole or any part of consideration has been received before issuance of completion certificate or its first occupation,” Nangia & Co Director Rajat Mohan said.
9:45 am: Watch this video
9:40 am: He said the GST Rules, which will come up for discussion in the Council meeting on March 31, would help ascertain whether a lower rate of GST is proposed for such transactions or whether a similar abatement procedure would be prescribed.
9:30 am: Deloitte Haskins Sells LLP Senior Director M S Mani said: “While service tax is applicable at present on sale of under construction apartments, it is levied on a lower value as abatement allowed. The abatement is ostensibly to take care of the value of the land involved in the construction of apartments”.
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9:25 am: But the bills presented in Parliament have now clarified this position. Tax experts said that currently service tax is levied on rents paid for commercial and industrial units, although it is exempt for residential units.
9:20 am: ‘Goods’ in earlier drafts of the bills were defined as every kind of movable property other than money and securities but includes actionable claim. ‘Services’ were defined as anything other than goods.
9:15 am: It was thought that GST may be levied on supply of immovable property such as Land or building apart from levy of stamp duty.
9:10 am: Senior party leaders in the Lok Sabha suggested that the Congress should not be seen as the one opposing the tax reform legislation as it was during the UPA government that the GST Bill was initiated to simplify tax structure.
9:05 am: According to sources, Gandhi told the members that the party should play the role of a constructive opposition and should not be seen as against the GST legislations.
9:00 am: At a key strategy meeting of Congress MPs in the Lok Sabha chaired by party vice president Rahul Gandhi, it was decided to raise the concerns of the public on the GST Bills and seek necessary amendments.
8:55 am: Meanwhile, Congress has said that the GST Bills in their present form were “not acceptable” to the party. But the party sought to tread cautiously to avoid being seen as against the tax reform measure.
8:50 am: Once these Bills are cleared by Parliament, the states will then take up the State GST Bill in their assemblies. S-GST bill has been prepared as a model of the central GST, with each state incorporating state-specific exemptions.
8:45 am: The compensation bill has been drafted to give a legislative backing to the Centre’s promise to compensate the states for five years for any revenue loss arising out of GST implementation.
8:40 am: The CGST Bill made provisions for levy and collection of tax on intra-state supply of goods or services, the integrated GST deals in taxation of inter-state movement of goods and services while the Union Territory GST Bill covers taxation in Union Territories.
8:35 am: Finance Minister, Arun Jaitley had tabled the four GST related bills- the Central Goods and Service Tax (CGST), Integrated Goods and Service Tax (IGST), Union Territories-GST (UT GST) and GST Compensation Bills in Lok Sabha yesterday.
8:32 am: Watch this video
8:30 am: The GST bills provide that sale of land and, sale of building except the sale of under construction building will nether be treated as a supply of goods not a supply of services. Thus GST can’t be levied in those supplies.
8:25 am: The Central GST (CGST) bill — one of the four legislations introduced, states that any lease, tenancy, easement, licence to occupy land will be considered as supply of service. Also, any lease or letting out of the building, including a commercial, industrial or residential complex for business or commerce, either wholly or partly, is a supply of services as per the CGST bill.
8:20 am: The government proposes to launch GST from July 1. It is estimated that the rolling out of the GST can add up to 2 per cent to India’s economic growth.
8:15 am: On Monday, Jaitley had introduced the 4 GST bills to implement the biggest tax reform since independence. Modi had said that the passage of these bills would lead to one tax regime for the entire country.
“The finance minister in detail briefed the party MPs about all the four Goods and Service(GST) bills and said these legislations are based on the principle of shared sovereignty,” Parliamentary Affairs Minister Ananth Kumar said. Come July 1 and leasing of land, renting of buildings as well as EMIs paid for purchase of under-construction houses will start attracting the Goods and Services Tax. Sale of land and buildings will be however out of the purview of GST, the new indirect tax regime. Such transactions will continue to attract the stamp duty, according to the legislations FM Jaitley introduced in the Lok Sabha on Monday for approval. Electricity has also been kept out of the GST ambit. GST, which the government intends to roll out from July 1, 2017, will subsume central excise, service tax and state VAT among other indirect levies on manufactured goods and services.