The Bill for 122nd constitutional amendment to enable Goods and Services Tax (GST) was passed in Lok Sabha unanimously, on Monday
The Lok Sabha, which had already passed the GST Constitution Amendment Bill in May 2015, took it up on Monday again to approve the modifications made in it by the Rajya Sabha last week.
The government had moved six official amendments, including scrapping of 1 percent additional tax. On the vexed question of GST rate which may have implications for inflation, Union Minister of Finance, Arun Jaitley said it would be decided by the GST council, which will comprise representatives of centre and states.
Implementation of the Goods and Services Tax (GST) will reduce tax evasion and improve ease of doing business by engendering a common market throughout the country, Finance Minister Jaitley said, as he moved the modified constitution amendment bill in the Lok Sabha.
GST will ensure one tax in the entire country. It will result in seamless transfer of goods and services in the country... This is a major indirect tax reform which will in long run will be in interest of the country
Appreciating political parties for showing unanimity in passing the bill in the Upper House, Union Minister of Finance said, “it is an important legislation and divided Parliament passing the bill would not benefit the country.”
The Minister further said the new tax regime will “check leakages, increase tax base for centre and states, eliminate cascading effect of tax on tax, reduce tax evasion and improve ease of doing business.”
Jaitley, while moving the amendments to the GST Bill cleared last week by the Rajya Sabha, said the Constitutional Amendment Bill is an enabling law.
After it is approved by the state Assemblies, three more laws — Central GST, Integrated GST and State GST — will be drafted by the GST Council. While the CGST and IGST will have to passed by Parliament, states will have to pass their SGST law.
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