GST Bill Finally Passed on 3rd August 2016
Finally, GST will be a Reality With Rajya Sabha Passing the 122nd Constitution Amendment Bill,2014 on 3rd August 2016 by majority.
It took 16 long years to reach this historical day for a dream tax reforms becoming almost a reality in India.This tax reform can result 2% growth in GDP of India.Its implementation will also result short to medium term inflation in India
But, the real implementation of GST will further take a long time. It has to be now passed in 50% of state legislative assemblies. Thereafter, it will have to again land up in both the houses of the Parliament for further debate on it, before it is enacted as GST Act in India .
Looking to such long process, the actual implementation of GST via GST Council will be possible by August- October 2017.Hence, the deadline of 1st April,2017 will again fail.
The foundation of GST was kept by our previous prime minister Shri Atal Behari Bajpaye, but Shri Narendra Modi,became the lucky prime minister to take GST to finality. It was a very pain taking long process where there had been series of oppositions and tussle between political parties and then between State Governments and Central Government.
Even,on this historical day, AIDMK MP’s walked out of Rajya Sabha before the voting could start.It must be also noted that till the last moment Congress and its ally wanted a firm assurance from the Finance Minister Shri Arun Jaitley that once GST Bills are passed in respective State Legislative Assemblies, it should be again brought in both the houses of parliament as Finance Bill rather than a Money Bill.But, the Finance Minister kept on replying that it shall be done as per the Constitution of India.
It should be also known that GST Council will have prominent role to decide various aspects of GST including Revenue Neutral rate(RNR). The average GST rate is going to be below 18%.Further,maximum goods will attract GST rate upto 18%.
The uniform taxation under GST will also result into ease of doing business in India.It will also create a regime at par with the guidelines of Economic Co-operation and Development (OECD) whereby the best standard for uniform globalised economy will be adopted in India as well.
The implementation of GST will be a long way and lot of changes is expected in draft GST Act,2016.The journey of GST has just begun wherein GSTN, CBEC, GST Council, Empowered Committee of State Ministers, allied experts committees,CEA et al have to contribute and undergo endless brainstorming sessions to refine,redraft, incorporate and evolve a perfect win win situational GST for Indian economy with hidden political agendas as well.
by Anandaday Misshra,Advocate
He is an eminent High Court advocate with expertise in GST model of different countries.He practices in Indirect Taxes, Corporate laws, Arbitration, IPR, Contract laws etc,.He can be contacted on email@example.com