GST crosses Rajya Sabha hurdle

The bill converts 29 states into a single market through the new indirect tax regime. It will help create a single national sales tax to replace several state and central levies. Under the concept of 'one nation, one tax', the bill is aimed at removing 'tax on tax'. Once implemented, the historic economic reform bill is expected to give a major push to India's economic reforms.

GST regime will see a pooled sovereignty, where Centre and states will sit together for the purpose of tax, said finance minister Arun Jaitley earlier in the house while replying to the debate on the bill. “The Union of States cannot exist without the union. It is not a confederation of States,” Jaitley said.

While all parties supported the bill, J Jayalalithaa led AIADMK abstained from voting.

With major hurdle being cleared, the bill is most likely to be implemented from April 1, 2017, after it is ratified by more than half of states. The bill has already been passed by Lok Sabha.

Meanwhile, the Central government will need to get three more legislations passed, viz. Central GST (CGST), State GST (SGST) and Integrated GST (IGST). (RKS)

ALCHEMPro News Desk – India