After the passage of historic GST bill by Lok Sabha, Prime Minister Narendra Modi walked up to the Opposition and shook hands with Congress leader Mallikarjun Kharge and former Prime Minister H D Deve Gowda.
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Reiterating its demand that the GST should be capped at 18 percent so that it doesn’t become “inflationary”, the Congress on Monday said that the NDA government should have done some “homework” before getting it passed.
The Bill will now be sent to state assemblies for approval after the President approves it.
“I am thankful to all the political parties, who helped the government to take an important decision”, he said. “GST is a new “moti” (bead) in this “maala” (necklace)”.
“We expect a fiscal boost, improvement in logistics for local companies leading to cost savings, and increased competitiveness in India’s manufacturing sector on the global front”, says Atul Penkar, head of offshore equities at Birla Sun Life Asset Management Company Limited.
The Constitutional Amendment Bill (122nd) was put to vote in Lok Sabha, where it was cleared with the votes of 443 members. He added that states were not self-sufficient but were interdependent and that the GST will help growth in under-developed regions.
Union Finance Minister Arun Jaitley made a strong pitch for “one nation one tax”, stating that India’s biggest tax reform will see the centre and states “pooling their sovereignty to reap the many benefits that will ultimately lead to India’s progress”.
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Modi had said the tax will be a move towards helping get rid of “tax terrorism” in the country, and will also assist in curbing black money.
