GST article

GST Constitutional Amendment Bill passed in Rajya Sabha

'One of the most significant and important moments in the economic history of independent India'

Goods and Services Tax

•  One Nation 
•  One Tax 
•  One Market 

The ‪RajyaSabha‬ today unanimously passed the historic Goods and Services Tax (GST) Constitutional Amendment Bill which the Lok Sabha had already approved last year, paving the way for its rollout likely by April next year.

The legislation was approved by the Rajya Sabha with 203 votes in favour and none against, in the 243-member House. The bill was passed after a after a seven-hour debate.

The main objective of the GST is to eliminate excessive taxation. ‪GST‬ is a uniform indirect tax levied on goods and services across a country. Many developed nations tax the manufacture, sale and consumption of goods using a single, comprehensive tax. The roadmap for implementation of GST will be announced tomorrow, said Revenue Secretary Hasmukh Adhia.

"The GST bill will empower the states, will increase revenue of states as well as Centre. It'll ensure that there is 'no tax on ‪tax‬' "finance minister Arun Jaitley said on Wednesday in the Lok Sabha.

It was the Congress-led UPA government that was the first one to table an iteration of the bill, which it did on 2011. It couldn't pass the bill then due to opposition disagreement. Then the BJP-led NDA tabled another version of the bill in 2014. That couldn't pass because this time, it faced disagreement on some of the provisions of the bill from its opposition, mainly the Congress party.

For this 2016 version of the bill, Union finance minister Jaitley held several rounds of consultations with opposition parties and state governments. His attempt was to bring everyone on board, because, notionally, most parties are in favour a single tax regime.

Earlier today, Jaitley thanked the Congress. "There has been major consensus building that has taken place. I am extremely thankful to all opposition parties especially Ghulam Nabi Azad (of the Congress," Jaitley said.

The Congress said it was grateful that the BJP acknowledged it was the Congress that first announced the GST.

"I'm glad FM acknowledged that it was UPA govt that first officially announced the intention to bring GST," the former finance minister P Chidambaram of the Congress said in the ‎Rajya‬ ‪Sabha‬.

Following the passage of the GST Constitutional Amendment Bill, the draft GST Bills will now be created by the GST ‪Bill‬, which will then be ratified by states and the Parliament.

GST's benefits are many: it will widen the tax base by easing compliances, boost ease of doing business, reduce the overall tax rate in the economy and thus help investment and boost growth. Being value-added in nature, it will also eliminate the economically-negative practice of levying tax on tax. Further, by doing away by differential tax structures in various states, GST will for the first time create a national market and boost inter-state trade.

This will surely facilitate borderless trade. In a digital economy where borders don't matter, it is a proud moment.

The bill aims to streamline India's fragmented tax system with a single levy. Indian businesses have been lobbying for the single tax rate as it would reduce costs, particularly for shipping goods across state borders.

Analysts say the move could boost India's economic growth by up to 2 percentage points.

Hon'ble Prime Minister Mr. Narender Modi tweeted "I would like to add that GST will also be the best example of cooperative federalism. Together we will take India to new heights of progress."

We welcome and congratulate all the citizens for witnessing this most significant moment in the economic history of our country.