The Goods & Services Tax (GST) officially known as The Constitution Bill, 2014, p has been passed in Rajya Sabha.
The Rajya Sabha on Wednesday passed the Goods and Services Tax (GST) Constitutional Amendment Bill which the Lok Sabha passed earlier.The 122nd Amendment Bill was passed with 203 votes in favour and none against.
GST will reduce the overall tax incidence. Along with it, competition between the players will play a role in the reducing the prices further.
Highlights of the Bill
- The Bill amends the Constitution to introduce the goods and services
- Parliament and state legislatures will have concurrent powers to make
laws on GST. Only the centre may levy an integrated GST (IGST) on
the interstate supply of goods and services, and imports.
- Alcohol for human consumption has been exempted from the purview
of GST. GST will apply to five petroleum products at a later date.
- The GST Council will recommend rates of tax, period of levy of
additional tax, principles of supply, special provisions to certain states
etc. The GST Council will consist of the Union Finance Minister, Union
Minister of State for Revenue, and state Finance Ministers.
- The Bill empowers the centre to impose an additional tax of up to 1%,
on the inter-state supply of goods for two years or more. This tax will
accrue to states from where the supply originates.
- Parliament may, by law, provide compensation to states for any loss of
revenue from the introduction of GST, up to a five year period.
Impact of introducing GST