GST bill to be taken up by Lok Sabha tomorrow

The Prime Minister, who was under attack by the Opposition parties, especially the Congress, for his absence during the passage of the bill in the Rajya Sabha, is likely to intervene in the Lok Sabha, sources said.

The Government has already released the “Model GST Law”, which contains comprehensive provisions with respect to the Central / State Goods and Services Tax (CGST / SGST) and the Integrated Goods and Services Tax (IGST), for public comments in June 2016.

A constitution amendment bill which enables the key tax reform was passed unanimously in Rajya Sabha yesterday. The bill now needs to be passed by Lok Sabha and then ratified by at least 15 states. It included names of cricketing legend Sachin Tendulkar and Kannda writer S L Bhyrappa. Responding to the Congress’s jibe of “PM mukth Parliament”, a minister said, “but they ran a PM mukth government”.

At the outset, the FAQ says GST is one indirect tax for the whole nation, which will make India one unified common market.

The rate still needs to be decided by the GST Council, which includes representatives from the Ministry of Finance and each state government.

Elaborating on the aspect of dual control, Adhia said there can not be a situation where one trader receives notice from both the Centre and a state.

“Replacing certain clauses which were approved in the Lok Sabha unilaterally is not proper”, he said.

Passing it in the Lok Sabha will be easy as the government enjoys a majority there.

The 66-year-old Constitution, which gives power to Centre to levy taxes like excise and empowers states to collect retail sales taxes, was amended though the 122nd Constitution Amendment Bill.

The sense of urgency is amplified by the government’s keenness to roll out GST from April 1, 2017.

Odisha Finance Minister Pradeep Amat on Thursday said it would bring uniform tax rate throughout the country and help in seamless movement of goods and services across the states.

The GST regime would streamline the taxation system and make it much more transparent, but would also create multiple taxation points, which will be a “challenge” for the IT industry, Nasscom said today.