After months of dilly- dallying the finance minister Arun Jaitley today tabled the GST Constitutional Amendment Bill in the lower house of the parliament.
Speaking in the Lok Sabha the FM said the government has made sure that no state will lose money and it will be a win-win tax reform for both the Centre and the state governments.
Also read: GST will halve inventory costs, reduce warehouses: Gati CEOAssuaging fears of state governments, Jaitley said the government will compensate the losses incurred by them for the initial five years.
"GST will ensure seamless transfer of goods and services, absence of Inspector Raj and no tax on tax," Jaitley told reporters soon after tabling the 122nd Constitution Amendment Bill in the Lok Sabha.The Bill will be considered for passing in the Budget session of Parliament beginning February, the Minister said, adding he did not feel the necessity of the legislation being referred again to a Standing Committee.
Under the provisions of the Bill, petroleum goods will be part of the GST but they will be levied at zero rate, implying that the states will continue to levy VAT while Centre will levy excise duty for initial few years.
Thereafter, it will be fully subsumed in the GST, the date of which will be set by the GST Council, which is made up of two third of states and the remaining of Centre.
The states, however, will continue to levy taxes on alcohol as is the practice now.Hailing the speed at which the government has announced this reform, Amit Kumar Sarkar says the government is now trying to make up for lost time.
Also read: Disruptions mar Winter Session, fate of key bills undecided
Satya Poddar of EY agrees saying introducing the GST has been a long battle and it has taken a very long time before it has finally seen the light of day.Watch videos for more.
(With inputs from agencies)
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
