GST (Goods and Services Tax) Bill, which has been termed as the biggest tax reform since independence, has been cleared by Lok Sabha, the lower house of Indian parliament. The approval by Lok Sabha has once again proven that the government is right on the track to implement the same before July 1st.
The four supplementary bills of GST, which were introduced in Lok Sabha earlier this week, include Central GST Bill, GST (Compensation to States) Bill, Integrated GST Bill and Union Territory GST Bill. The session on Wednesday, in which the bills were passed, went on for over 7 hours and a discussion on amendments by opposition parties took place before the 4 bills were eventually approved.
Speaking at the end of the debate, Union Finance Minister Arun Jaitley said that the implementation of the GST bill will be one of the most historic moments in post-independence era. He also said that GST rollout will make day-today commodities slightly cheaper. Speaking of a variable rate, he also added that GST rate will depend on whether the commodity is used by a poor man or a rich man. Also, the implementation will make sure that the harassment of businesses and businessmen by officials of various departments is controlled as there will only be one centrally controlled tax structure.
The GST council, which comprises of finance minister of country and states, has recommended a four slab tax structure with 5, 12, 18 and 28 percent of tax in various categories. On top of that, there will be extra cess and luxury tax on luxury items and demerit goods. According to Arun Jaitley, this is to compensate states for the loss of revenue in the first five years.
Businessmen will now have to deal with just one tax officer rather than a lot of them at multiple levels. Arun Jaitley also added that a final decision about centralized registration to banks will be taken later at a meeting of GST council.