The Constitution (122nd Amendment) Bill, 2014 (GST Bill) was passed Lok Sabha on May 6, It was referred to a Select Committee of Rajya Sabha on May 14, 2015. The Committee is scheduled to submit its Report by the end of the first week of the Monsoon session.2 GST bill is aimed at creating a pan-India uniform Tax regime with an object of business friendly environment and avoiding cascading of taxes.
Object of GST
• To amend the Constitution of India to introduce the goods and services tax for conferring concurrent taxing powers on the Union as well as the States including Union territory with Legislature.3
• to create a harmonized system of taxation by subsuming all central and state indirect taxes under one tax.
• to address challenges with the current indirect tax regime by eliminating cascading of taxes, broadening the tax base, and achieving uniformity in inter-state taxes
• to introduce the goods and services tax (GST)
• to provide for concurrent powers of State and Central legislative bodies to make laws on GST.4
• to provide for establishment of the GST Council which will consist of the Union Finance Minister, Union Minister of State for Revenue, and state Finance Ministers.
Key Features
• Insertion of new Article 246A in Constitution of India conferring power on both the Union and the State legislatures to legislate on GST.
• GST is applicable on the supply of goods or services.
• The GST Council will recommend rates of tax, period of levy of additional tax, principles of supply, special provisions to certain states etc.
• To provide for centre to impose an additional tax of up to 1%, on the inter-state supply of goods for two years or more.
