‘One Nation, One Tax’: After 10 Years Of Struggle, GST Bill Finally Cleared By Rajya Sabha

[JANASENA]

 

GST Bill cleared by Rajya Sabha
The Rajya Sabha on Wednesday night gave an advance gift to the country for the upcoming 70thIndependence Day by passing the GST Bill. The Upper House of the Parliament voted unanimously in favour of the Goods and Services Tax (GST) Bill which was pending in the house since a long time. The Bill is one of the most important economic reforms in the history of independent India.

---

How the truce happened:
Thanks to flexibility and cooperation shown by both the government and the opposition, the Bill saw the light of the day. The BJP government included most of the major demands of Congress such as removal of 1% additional tax in manufacturing states and clearer provisions for compensating states for revenue loss for five years. At the same time, Congress got all its MPs to vote in favour of the Bill despite one of its main demands of including tax rate in the Bill not being entertained by the government. The only party who remained opposed in the end was AIADMK, the ruling party of Tamil Nadu, whose MPs staged a walkout during voting. Finally, the Bill got cleared with 203 votes in favour and none in against.

---

What the Bill promises:
The GST seeks to replace all the existing state and central indirect taxes with one single levy. Currently the states collect VAT, Sales Tax, Luxury Tax, Entertainment Tax and many other taxes. GST will subsume all of these and replace them with one single tax. This is expected to unify the tax rates across all states, converting the country into one unified market where any trader can buy or sell goods and services from anywhere and still pay the same cost. This will not only boost the businesses but also prove beneficial to consumers who will see the prices of commodities coming down. It will also make Indian goods and services more competitive globally which can be leveraged by Indian businesses to their advantage.

---

What next?
So now the Bill has become a law. Since it was passed by Rajya Sabha with amendments, the Bill will be sent to Lok Sabha to ratify these amendments. This should not be a problem as Lok Sabha has already passed the Bill and the government enjoys a full majority in the Lower House. Next, the Bill will be sent for approval by atleast 50% of state assemblies. This step can take some time, as BJP is still not ruling in 50% of the states, and although other parties have come on board, there may be differences within them regarding the details. Only after they approve, will the Law finally come into effect.

Anyways, the Rajya Sabha was the most crucial test for this legislation and it is heartening to see that it has been cleared.

[Spartan]

still lot of hurdles to pass..before going live in April 2017

[mastercheif]

Layman terms lo sollu nan GST ante yenti .

[xxxmen]

1 minute ago, mastercheif said:

Layman terms lo sollu nan GST ante yenti .

currently the states collect VAT, Sales Tax, Luxury Tax, Entertainment Tax and many other taxes. GST will subsume all of these and replace them with one single tax. This is expected to unify the tax rates across all states, converting the country into one unified market where any trader can buy or sell goods and services from anywhere and still pay the same cost.

[stockdazzler]

mari states ki revenue ela vasthadi?  center share chestada?  very bad for states govts. No wonder TN doesnt like it

at least dani kanna english peru pettaru. Neeti Ayog ela hindi penta pedatharu anukunna

[Silent_Boy]

4 minutes ago, mastercheif said:

Layman terms lo sollu nan GST ante yenti .

telugulo with example:

 

[lazybugger]

4 minutes ago, stockdazzler said:

mari states ki revenue ela vasthadi?  center share chestada?  very bad for states govts. No wonder TN doesnt like it

at least dani kanna english peru pettaru. Neeti Ayog ela hindi penta pedatharu anukunna

agreed. but there's no other way. The current system is very inefficient, for inter state trade.

State govts can start taxing income accrued in their state. I think that'll be the only way they can maintain autonomy.

[mastercheif]

8 minutes ago, Silent_Boy said:

telugulo with example:

 

ayethey manchidey ga..

[lazybugger]

TN is the model state in India. Every state must learn from how its members represent TN at the central level.

TN's objection to GST was impressive, but they were the only sane voice talking of federalism.

Looks like everyone else was okay with being a vassal state to Delhi.

TN rocks.

[Rimbolamaster]

what about states that have good manufacturing and service sectors? Mana south states ne teeskundam we contribute a lot to national bourse and we need some of our contributions to stay within state.

 

IT infrastructure ni develop cheyali ante.be it physical infrastructure like roads ,security etc or intellectual property through investment in education.government needs money which they get through state taxes.

Ipuudu centralised tax system unte..anni panulaku do we need to go to centre?? Aa lekkana teeskunte states autonomy poinatte kada.

[mastercheif]

1 minute ago, Rimbolamaster said:

what about states that have good manufacturing and service sectors? Mana south states ne teeskundam we contribute a lot to national bourse and we need some of our contributions to stay within state.

 

IT infrastructure ni develop cheyali ante.be it physical infrastructure like roads ,security etc or intellectual property through investment in education.government needs money which they get through state taxes.

Ipuudu centralised tax system unte..anni panulaku do we need to go to centre?? Aa lekkana teeskunte states autonomy poinatte kada.

poompuhar !!

[lazybugger]

19 minutes ago, Rimbolamaster said:

what about states that have good manufacturing and service sectors? Mana south states ne teeskundam we contribute a lot to national bourse and we need some of our contributions to stay within state.

 

IT infrastructure ni develop cheyali ante.be it physical infrastructure like roads ,security etc or intellectual property through investment in education.government needs money which they get through state taxes.

Ipuudu centralised tax system unte..anni panulaku do we need to go to centre?? Aa lekkana teeskunte states autonomy poinatte kada.

ee mukka KCR gaani, CBN gaani enduku raise cheyyaledho artham kaavatla.

[stockdazzler]

12 minutes ago, lazybugger said:

ee mukka KCR gaani, CBN gaani enduku raise cheyyaledho artham kaavatla.

  the Bill will be sent for approval by atleast 50% of state assemblies.  discussion ki vasthadi ga chuddam emi chestaroo