GST Bill passed: Congress alleges violation of Constitution, says BJP 'misled 'House
- Author: Leroy Wright Mar 30, 2017,
Mar 30, 2017, 0:53
Replying to a debate on the four bills related to GST in the Lok Sabha, he said all other taxes like entry tax in states will be removed once the GST is in place.
The Goods and Services Tax Council, comprising federal and state finance ministers, earlier approved the new tax plan.
- The compensation bill that was passed on Wednesday will ensure states get compensated for the first five years for the revenue loss after the GST rollout.
The Centre has set the target of July 1 to roll out the Goods and Services Tax (GST).
Prime Minister Narendra Modi and several senior members of the Union Cabinet were present in the House when the four bills were taken up for consideration and passage.
Speaker Sumitra Mahajan dismissed the opposition's objections, pointing out that copies of the draft bills were sent to all members of the Lok Sabha on Saturday morning and they had enough time to go through them before these were presented today for a discussion and the house's sign-off.
India has finally got the biggest tax reform in its history - the Goods and Services Tax (GST) - nearly 15 years after it was conceptualised.
The integrated GST (I-GST) deals in taxation of inter-state movement of goods and services while the Union Territory GST (UT-GST) Bill covers taxation in UTs.
A Union Territory GST Bill will take care of taxation in UTs of Chandigarh, Andaman and Nicobar Islands, Lakshadweep, Dadra and Nagar Haveli and Daman and Diu. The states have pooled in their sovereignty to the GST Council, and so has the Centre.
"Intention may be good but this will land the country in complete tax distortion", he said.
Congress leader Veerappa Moili asked the finance minister as to who empowered the GST Council to levy the Article 265 which says that no tax can be levied without the back of the law.
The finance minister said the GST Council was working on the basis of consensus and slowly all items will come within the ambit of the new indirect tax regime. Not a great reform which will be a gamechanger, said Moily.
The meeting was also told that the new legislations will usher in a one-nation one-tax regime. The GST aims to unite the country into a single market by removing tax barriers across states.
Besides creating an anti-profiteering authority that will see the benefit of lower taxes is passed on to consumers, the new legislations provide for setting up a Consumer Welfare Fund.
"This would also be dependent on the rate fixation committee which is expected to finalise its recommendations in April", Mani said.