The NDA Government is focused on their target to get the Constitution amended to apply the GST Bill from 1st April, 2016. But the opposition parties could delay the GST rollout date, especially the Congress party wants to make changes in the Bill.
The BJP government is in the dock due to Lalit Modi dispute and Vyapam scam in the BJP ruled M.P. state. These two stigmas could be a hindrance for the government and might distract the GST agenda of the NDA government which led by the Prime Minister, Mr. Narendra Modi.
Also Read- GST Overview: Economical Effects on Govt, Companies and Individuals
Here we are describing five reasons, whereby the amendment Bill could be delayed from its implantation date April 2016.
- The Congress is opposed to the GST Bill roll out. The party wants that the total rate of GST to be not more than 18 per cent. It is opposed to the states for levying one percent tax over and above the GST rate. The Congress also wants to merge alcohol, petroleum and electricity into GST.
- The amendment GST Bill has been only the passed in Lok Sabha but it is stuck in the Rajya Sabha. Both Sabhas must have to agree to apply the GST Bill. First process of the Bill pass in Lok Sabha has completed and the second step is not completed yet.
- The value added tax legislations to be replaced by the GST Provisions. The all states have their own VAT legislations- what will happen between the state VAT being replaced and new GST Bill comes into force?
- The GST Bill to be passed in the states is not easy because all laws are passed in the English language and laws have to need to be translated in to local language before getting notified, this process takes a long time.
- When the GST bill will have rolled out, then the industry will have to invest in IT to follow the new system. Therefore, all stakeholders need to be educated on GST before it is passed.
