Constitutional Amendments finally approved by Rajyasabha Unanimously for GST
Finally the decks have been cleared for the implementation steps to be taken for making GST a reality; as a biggest ever indirect tax reform in India. Now India has come a long way in rationalising its tax structures as the Constitution (122nd Amendment) (GST) Bill, 2014, which the Lok Sabha had already approved last year, has been passed in the Rajya Sabha with consensus of all political parties on 3rd August, 2016. This historic and landmark event has ended about a decade old uncertainty and diplomacy which was full of speculations and heartburn.
The exact rate of the tax under GST regime will be finalised in the coming months, however we can say that with this indirect tax reform in India, all indirect taxes such as sales tax, excise duty, etc. shall be subsumed in GST, which is expected to result in reduction of rates of taxes in medium/ long run, allowing seamless movement of goods and services across the Indian states, marginal reduction in prices, increase in demands by consumers, etc. With introduction of GST, not only the common man will be benefited, but also its benefits will extend to trade & Industry, Governments, GDP, etc.
Now government has to act rigorously to roll out the GST by the stated deadline of 1 April, 2017, which will depend on completion of many steps beforehand, like Approval of amended version of Bill in Loksabha, approval from 50% of the states, approval of the Hon’ble President, dealers and taxpayers have to be prepared, governments have to put the requisite functional system in place, etc. As there are still many steps before the GST becomes a true reality, hopes are jumping with the toughest hurdle having been crossed over. Now the question remains ‘when’ the GST will be implemented as we have left behind the ifs and buts about the GST.
One Country, One Tax, One Market – 14 FAQs on GST by Ministry of Finance
The Ministry of MoF has explained the purpose, benefits, features, etc. of GST, as under:
Next Steps/ Roadmap for GST: Presentation by Ministry of Finance
Revenue Secretary’s presentation on next steps required on Goods Services Tax Revenue Secy’s presentation on next steps required on Goods and Service Tax (GST)