GST Bill in Parliament |
Despite Opposition uproar, the government of India on April 24 tabled a constitution amendment Bill to implement the Goods and Services Tax (GST) that the Finance Ministry claims can raise India`s GDP by up to 2%. The Centre proposed to roll out the indirect tax regime on April 1 next year to replace the complex system of nearly 20 different taxes and levies imposed on commodities by different states. This is part of Prime Minister Narendra Modi`s promise to streamline government and support businesses. Finance minister Arun Jaitley said the GST will simplify and harmonize the indirect tax structure, reduce cost of production and inflation in the economy and ensure India becomes a common seamless market. Since GST is going to lead to a win-win situation as far as the Centre and the states are concerned, Jaitley introduced GST Constitution Amendment Bill to the Lok Sabha for consideration. The Congress led an Opposition walkout with parties demanding the Bill be examined by a standing committee of Parliament as it was quite different from a UPA legislation brought in 2011. The Bill amends the Constitution and so requires a two-thirds majority in both Houses to vote for it, while it already has the consent of many states who are key stakeholders.
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