Wait, GST is not a reality yet: It still has to cover 7 grueling steps
India is going to see one of the biggest economic reforms which was long waited. Finally, the much waited GST bill has been passed from the Rajya Sabha. It was cleared in the upper house of Indian parliament on 3rd August, 2016, which will be considered a big moment in Indian history. GST bill is one solution to all the taxation problems which was prevailing in this country resulting in poor and inconsistent generation of revenue for the Govt. and also improper prices of goods for the customers. As India is a land of unity in all its diversity, so is the GST bill which will bind the whole country, in the matter of taxes. But after Rajya Sabha showing it a green signal also, there are several key hurdles it needs to clear so that the smooth implementation of this bill can be done.
|Sl. No.||Attributes||Related Data|
|1||Name of the bill||Goods and Services Tax ( GST)|
|2||Passing date||3rd August, 2016|
|3||Passed by||Rajya Sabha|
|4||Deadline of full implementation||1st April, 2017|
|5||Political party opposing GST bill||AIADMK of Tamil Nadu|
|6||Majority needed in states||At least 15 votes from state governments|
|7||Forum to fix the GST rates||GST council|
Needs Lok Sabha clearance first
As per rules of passing and implementing any bill, once it gets cleared from the Rajya Sabha, it goes to the Lok Sabha for its clearance. In this stage, the amendments which were proposed in Rajya Sabha will be examined. The ruling party i.e. the NDA Govt. is very keen to pass it and it holds the majority in the Lok Sabha. However there are also chances of the GST bill not getting passed here as there are still some mixed reactions to it.
State Assembly clearance
After the GST bill gets its clearance, it will be on the states to clear it. As the GST bill will be implemented in the entire country, so the majority of the State Governments will have to give green signal to this bill. To get majority, the GST bill needs at least 15 State Government’s support. At present, BJP is governing 13 states. But there were also few state governments like Tamil Nadu who were not in favour of it. All the AIADMK members in the Rajya Sabha skipped the voting session which clearly shows their lack of interest in the GST bill.
After getting clearance from the State Government, the GST bill will be put up before the Hon’ble President of India who will give it the final verdict. The deadline to complete the task is 1st April, 2017. Hence, it is an uphill task for the centre to roll the GST bill before its deadline.
Formation of GST council
After the GST bill gets all clearances, then a dedicated council will be formed to decide and fix the rules of the new amendments. This council will be named as the GST council which will be a mixed bag of both states’ and centre’s representatives. They will come up with the feasible RNR which will be beneficial for both the states as well as centre.
GST Rate fixation
As per the recommendations, the essential goods which are required for living will have low rate of taxes where as the commodities of luxury will attract more taxes. And the GST rate of tax will be applied for all the goods as well as services apart from the above two, which lies in the middle slab.
Split of Central GST and State GST
The GST council will fix the rate of taxation for the states and the centre. The GST rate applicable in the centre will be termed as Central GST where as the states’ GST rate will be State GST.
Three more laws to be passed
A total of three laws will have to be passed before GST bill gets fully implemented. For centre, the Central CST law will be passed. For the integrated level, the Integrated GST laws will be passed. These two will be the responsibility of the Parliament. The third law will be the SGST which is the states’ GST which will be passed by all the existing 29 states.