“GST is one of the critical tax reforms which has potential to create one single market in India for goods & services and will boost country’s economy significantly”. The Rajya Sabha last night cleared the long pending GST Constitutional Amendment Bill and it has to now go back to the Lok Sabha for ratification.
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The GST Bill had been passed by the Lower House in May 2015 and was stalled at the Upper House due to lack of political consensus.
India’s finance ministry, headed by finance minister Arun Jaitley, said changes would make it easier to do business and reduce the compliance burden.
With regard to keeping businesses with turnover of Rs 1.5 crore out of CGST ambit, Adhia said a final call will be taken by the GST council.
“We are going to try to make it as reasonably quick as possible”. “GST will remove one hurdle to the smooth movement of goods and services and focus corporates’ location decisions on operational considerations rather than tax regime”, Dironsaid. “The Telugu Desam (TDP) government has always supported taxation reforms and we supported the GST Bill in the larger interest of the country”, Yanamala told media on Thursday. It expects GST to have a “negligible” impact on overall inflation.
Nearly all the NDA ruled states will have to call special sessions to pass the GST as the monsoon session of the state assemblies is over and the winter session is still a few months away. But it is still a huge improvement on the existing system.
Analysts say the passage of the legislation is a rare victory for Prime Minister Narendra Modi in Parliament.
Parsekar said that the Bill, passed in the Parliament on Wednesday, is being studied.
The reform, known as the Goods and Services Tax Bill, would unify 11 charges levied at both the national and state level, including excise duties, VAT, entertainment taxes and taxes on lotteries, betting and gambling.
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“Increased compliances requirement in the form of number of returns required, challenge in transition to the new regime etc would definitely require a professional hand for adherence wherein chartered accountants can play a vital role”, the release said. They have opposed GST based on certain points and they walked out since the government did not accept their amendments.
