ONE NATION, ONE TAX: GST BILL PASSED IN UPPER HOUSE OF THE INDIAN PARLIAMENT

ONE NATION, ONE TAX: GST BILL PASSED IN UPPER HOUSE OF THE INDIAN PARLIAMENT

ONE NATION, ONE TAX: GST BILL PASSED IN UPPER HOUSE OF THE INDIAN PARLIAMENT

The Rajya Sabha (Upper House), on 3 August 2016, unanimously passed the crucial 122nd Constitutional amendment towards turning the Goods-and-Services Tax (GST) Bill into law. The bill will now go back to the Lok Sabha (Lower House) to incorporate the amendments approved by the Rajya Sabha. The bill will thereafter have to be ratified by at least half of all the State Assemblies. The government has set 1 April 2017as the date for introducing the GST. 

The GST will make the country one unified common market. It is a single tax on the supply of goods and services, right from the manufacturer to the consumer. The GST would subsume various central (Excise Duty, Additional Excise Duty, service tax, Countervailing, Special Additional Duty of Customs, etc.), as well as State-level indirect taxes (VAT/sales tax, octroi, purchase tax, entertainment tax, luxury tax, entry tax, etc.), numbering at least 17, thereby mitigating double taxation and creating one window for market operations. 

A newly formed GST Council would decide the GST rate and other rules and regulations. The Council shall function under the Chairmanship of the Union Finance Minister and will have all the State Governments as Members

According to economic analysts, the GST could add as much as 2 percentage points to India’s Gross Domestic Product.

FAQs (Frequently Asked Questions) on the GST

 

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8 August 2016