The biggest tax reform since Independence, the GST Bill, was approved by the Rajya Sabha to replace a raft of different state and local taxes with a single unified value added tax system to turn the country into world’s biggest single market.
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Prime Minister Narendra Modi is likely to intervene during the debate on the Bill in Lok Sabha.
The industry body said it is hopeful that the Government will be able to complete the procedural formalities for its rollout so as to be effective from April 1, 2017.
The ruling Bharatiya Janata Party (BJP) and the opposition Congress have issued whips asking their members to be present in the house on Monday in view of the GST bill being taken up.
The Rajya Sabha passed the amendment by two-thirds majority and it will now be returned to the Lok Sabha for approval. “If the need arises, we will call a special sitting of the Bihar Assembly to approve the GST legislation”, said Kumar.
Equally eager to get moving on GST is West Bengal, whose finance minister Amit Mitra, as the head the empowered committee of state finance ministers, has led talks with the Centre on the tax reform.
Aiming for early implementation of the Goods and Services Tax (GST), senior Union ministers have spoken to chief ministers of NDA-ruled states to ensure that the constitutional amendment is ratified by state assemblies at the earliest.
The Bill, which was passed by a consensus vote in the Rajya Sabha on Wednesday, would be again taken up by the Lok Sabha for passage on Monday to incorporate the amendments made to it in the Upper House.
The bill will then go to the Presidential for his assent and the states have also been asked to ratify it within 30 days of this. After which, the GST Council will be constituted.
The government’s chief economic adviser has proposed a band of 17-19 per cent for the GST rate, but some states have said it must be higher than 20 per cent to offset revenue losses.
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It is also expected to result in greater tax compliance, boosting government revenues.
