Good and services tax bill introduced in LS, Cong walks out

GST will replace a range of central indirect taxes and VAT in states

GN Bureau | April 24, 2015


#goods and services tax   #GST   #Arun Jaitley  

With an aim to roll it out from next April, finance minister Arun Jaitley on Friday moved the constitution amendment bill for the implementation of the goods and services tax (GST) in the Lok Sabha. The introduction of the bill saw a walkout by Congress members, who wanted it to be sent to the standing committee of finance.

Regional parties such as the All India Anna Dravida Munnetra Kazhagam (AIADMK), Biju Janata Dal and Trinamool Congress also wanted the bill to be sent to the standing committee. Their point was that the current version of the bill is very different from the earlier version. However, this was rejected by Jaitley. He said the bill has seen extensive deliberations involving the standing committee of finance, empowered committee of state finance ministers and the Centre over the last few years.

The bill will be debated next week as opposition members sought more time to move any amendments.

Jaitley said GST will simplify and harmonize the indirect tax structure, reduce cost of production and inflation in the economy and ensure India becomes a common seamless market. The GST is unlikely to lead in any major revenue loss for the states, he claimed.

 “The constitution amendment bill for GST has seen the most extensive debate since 1950s. Nobody has the monopoly to stop the growth of the country. The UPA (United Progressive Alliance) should start backing legislations that itself has introduced,” said Jaitley. The GST’s implementation will increase gross domestic product (GDP) growth by 1-2 percentage points, the finance minister said.

What is GST?
The goods and services tax will subsumes various central indirect taxes, including the central excise duty, countervailing duty, service tax and states taxes like value added tax (VAT), octroi and entry tax, luxury tax.

It will make legislation on the taxation of goods and services a concurrent power of the centre and the states.

It will shift taxation from the sale or purchase of goods to the supply of goods or services.

The bill seeks to establish a GST council and it will decide which taxes levied by the centre, states and local bodies will go into the GST; which goods and services will be subjected to GST; and the basis and the rates at which GST will be applied resolution of disputes.

The centre will levy an additional one per cent tax on the supply of goods in the course of inter-state trade, which will go to the State for two years or till when the GST council decides.

Parliament can decide on compensating states for up to a five-year period if States incur losses by implementation of GST.

Comments

 

Other News

NDA victory & Modi 2.0: The reforms agenda to be

The resounding and unprecedented mandate in favour of Narendra Modi in the 2019 general elections signals two very clear indicators: firstly, voters across India appreciate the Modi 1.0 governance, and secondly, voters across India look up to Modi to lead India into its 75th Anniversary.  

Post-Fani, people continue to live in distress

The families of Narahari Nayak and Prafulla Nayak from Durgadaspur village in Pipili area of Puri district of Odisha are sleeping on the road in the open as their houses were blown off during cyclone Fani that hit the Odisha coast on May 3. Several other families of the village who had thatched houses met

Rs 52.18 lakh spent on Vande Bharat express inaugural

Indian Railways spent Rs 52.18 lakh to organise the inaugural function of the country’s first engineless semi-high speed train Vande Bharat express. The train was flagged off by prime minister Narendra Modi from New Delhi on February 15. In an RTI reply to this reporter, the northern railwa

On a personal note: Rasika Dugal

A BSc in Mathematics and an alumnus of the Film and Television Institute of India (FTII), Rasika Dugal has acted in Hindi and Malayalam films, web series and television serials besides hosting shows. She is the recipient of the Best Actor Award at Rajasthan International Film Festival for her role in the f

Making sense of India’s elections

With highly appropriate lyrics at the start of every chapter, combined with deep insights from rigorous analysis of data – Citizen Raj is an absolute delight to read.    In Citizen Raj, Surjit Bhalla, well known economist and commentator, looks at Indian elections from

GAIL expedites Jagdishpur-Haldia and Bokaro-Dhamra pipeline project work

 Stepping up the momentum for construction of the Jagdishpur-Haldia and Bokaro-Dhamra natural gas pipeline (JHBDPL) and Barauni – Guwahati Pipeline (BGPL) pipeline, GAIL (India) has winded up finalising awards for Rs 10,500 crore contracts for pipe supply and laying of the integrated 3,400 km-lo

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter