Since the independence, there was indeed a very deep requirement of a clear and smooth taxation scheme which would make India – a better nation and economy with its all round prosperity and everyone contributing for the same cause.
Now, that the GST Bill has finally saw its day of light, Rajya Sabha today approved this significant 122nd Constitutional amendment to turn this Bill into Law. Whereas Lok Sabha was already in the side of this important Bill.
However, the Bill will be travelling back to the Lower House for the application of amendments approved by the Rajya Sabha. The Bill have also to negotiate with at least 50 per cent of state assemblies as well.
The Bill also saw 203 votes in favour of it and none against, but AIADMK was the only party which was rather disappointed with the said Bill and literally walked out while the voting process was going through.
To recall, GST(Goods and Services Tax) is a tax which is an all inclusive tax scheme which will overlap all the current indirect tax regime subsequently. The GST will be levied on both Goods and Services as clear from its name and will be having a dual structure comprising of Central GST and State GST.
The GST effects on central level will be seen on the following areas and rather it will totally replace the position it encompasses Central Excise Duty, Additional Duties of Excise and Customs, Special Additional Duty of Customs (SAD), Service Tax, Cesses and surcharges on supply of goods/services.
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On the Constitutional Cap of GST tax rate of 18% issue was also a point of hot topic and on this debate, Finance Minister Mr. Arun Jaitley was saying that “the guiding principle would be to keep the “rates as low as possible, certainly lower than what it is today.”
On the other hand, the state level GST Tax will be occupying the mentioned tax regime – Value added Tax(VAT), Central Sales Tax, Purchase Tax, Luxury Tax, Entry Tax, Entertainment Tax, Taxes on advertisements, lotteries, betting, gambling and State cesses and surcharges.
Former Finance Minister P Chidambaram, also saying some noted points regarding GST – “Just as the income tax rate can’t be levied at the whim of the executive, and needs legislative approval, the same must also hold true for the goods and services tax rate (GST),”
The Finance Minister Arun Jaitley said in his opening statement, “Today we may not put the rate in the Constitutional amendment bill but we will have to put it in the central bill,”
But in an opposite case, certain parties were seen opposing the GST with reason and in totally despair, Navaneetha Krishnan of AIADMK blurted out – “Because of GST Bill, there is a permanent loss to state of Tamil Nadu and it will violate the basic structure of the constitution,”
Whereas on the other side, some imminent people of country were supporting the GST Bill with there congratulations note, like Uday Kotak, executive vice chairman and managing director of Kotak Mahindra Bank said, “Proud moment for all of India, compliment Parliament and the government of India,”
GST Tax regime has certain benefits to come with like, it will definitely try to put a full stop on the tax evasions currently being practised in India, Lower the tax rates or atleast will make the condition better, reduce the complexities of business operations dealing with tax process, and a certainly add on to the Gross Domestic Product(GDP).
Modi has succeeded in putting forth the most important Bill in motion and will certainly benefit the nation, it is speculated by the government that this significant tax regime will help to add 1.5% extra growth to the annual economic growth of 7.5 percent.
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The GST will try to bring down all 29 states into one market place which will improve the running structure of it, which otherwise will be using their own sales tax accordingly and creating a random picture of economy till so far. Apart from this, Investors from all over the nation, are happy with this and described it as a silver bullet for the Indian nation and its economy.