Lok Sabha on 6 May 2015 passed the Goods and Services Tax (GST) Bill, 2014. The bill also called Constitution (122nd Amendment) Bill seeks to introduce GST regime in India.
The bill will transform India into a common market, harmonising myriads of state and central levies into a national goods and services tax which is expected to boost manufacturing and reduce corruption.
Main Highlights of the Bill
• It provides for constitution of a Goods and Services Tax (GST) Council by inserting Article 279A in the Constitution. The Council will recommend to the Union and States on the inclusion and exclusion of goods and services.
• It proposes an additional tax on supply of goods, not exceeding one percent, in the course of inter-State trade will be levied and collected by the Union for a period of two years and apportioned to the States.
• The net proceeds of additional tax on supply of goods, except the proceeds from Union Territories, will not form the part of Consolidated Fund of India.
• It provides for the compensation to the States for loss of revenue arising on account of implementation of GST for a period of five years.
• It subsumes all the Central indirect taxes, levies and Central Sales Tax and State Value Added Tax and Sales Tax.
• It covers all goods and services except alcoholic liquor for human consumption for the levy of GST.
Now, the bill needs to be passed in Rajya Sabha after which more than a half of India's 29 states must approve it before the central and state governments would get equal powers to tax goods and services.
With the passage of GST bill at every stage, the whole country, which is one-sixth of world's population, would become a single market and would give a necessary fillip as far as the trade is concerned.
Now get latest Current Affairs on mobile, Download # 1 Current Affairs App
Where: In Lok Sabha
When: 6 May 2015
DISCLAIMER: JPL and its affiliates shall have no liability for any views, thoughts and comments expressed on this article.