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KEEPING GST RATE FIXED AT 18% AND BRINGING GST AS A FINANCIAL BILL AND NOT MONEY BILLS
After a long period of histrionics and haggling, the Goods and Services tax(GST) bill was finally passed in the Rajya Sabha & Loke Sabha by amending the constitution which can be considered as a historic day in the Rajya Sabha and leter on in Loke Sabha. This would pave the way for the “one country, one tax” concept.
With all the parties pledging support except for the AIADMK, the Rajya Sabha has passed GST which is a constitutional amendment by taking in two thirds of majority.
The amendments kept forward by the finance minister, Mr. Arun Jaitley were also taken into consideration. The bill shall now be sent back to the lower house for its approval.
This constitutional amendment of GST shall now enable both central and the state governments to levy the GST simultaneously,which shall subsume all the indirect taxes which are currently levied inclusive of service tax and excise duties. Rather than on production, it will now be levied on the basis of consumption.
The GST Bill amendments adopted by the Rajya Sabha last week were unanimously passed by the Lok Sabha on Monday 10 Aug 2016.
Two important components:
The GST will include 2 components in reference to the federal structure of our country: the State GST(SGST) and the Central GST(CGST).
The shift from various indirect taxes to the GST Regime will now lead to a seamless and a uniform market across India. GST will boost (increase) growth rates,check evasion and will bring into force a uniform rate said the Finance Minister Mr. Arun Jaitley while he initiated the debate.
Mr. Chidambaram, the lead speaker of the Congress party made it very clear that main opposition party shall support long pending GST Bill on the condition that the government would give an assurance on 2 important things: Keeping the GST rate fixed at 18% in the ongoing subsequent legislation for roll-out of GST and bringing GST as a financial bill and not money bills, to which the Rajya Sabha will vote on and not just discuss.
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