One nation, one tax as GST bill clears Rajya Sabha

That had resulted in over a dozen taxes, from local sales taxes to excise and Customs, amounting to 20 to 40 per cent of levies on products.

The GST Bill was yesterday approved by the Upper House with 203 votes in favour and none against, after a seven-hour debate during which a rare bonhomie was witnessed among the ruling and the opposition parties. Wednesday’s legislation, which was merely an enabling provision, needs to be followed by three pieces of legislation – a central GST bill, interstate GST Bill and a separate state GST bill in the states.

“Our calculation suggests that if you allow 18-20 per cent (GST rate), there is no inflation impact on average”.

“Prior to GST, companies in India faced multiple level tax structures, which made it hard for them to conduct business competitively”, Arun Singh, lead economist at Dun & Bradstreet India told AFP.

He also said that it would help the traders and people doing business across the country.

“We are going to try to make it as reasonably quick as possible”. Then will start the process of states passing their own SGST Bills to complete the process. The council will “draw a balance” between revenue requirements and the need to keep tax rates low for the common man, he said.

“This is a transaction-based tax unlike income tax, so it can come at any time of the year on the first day of the month”, said former CBEC Chairman Sumit Dutt Majumder. “GST will bring in the much-needed transparency and higher investments in the coming years and we hope that a few percentage points to India’s GDP will be added through higher tax revenue and investments”.

Jaitley praised the inherent maturity of Indian politics in approving the tax reform, claiming that a major step has been taken in the direction of having a uniform tax in the country. “It is a contempt of Parliament”, he said.

“Our government has raised the issue of levying additional non rebatable green tax on minerals and other polluting goods sold in course of interstate trade and commerce to compensate for the adverse effects of pollution”, the finance minister said.