New Delhi: The Rajya Sabha on Wednesday passed the Goods and Services Tax (GST) Constitutional Amendment Bill which the Lok Sabha had already approved last year. The exact rate of the tax will only be decided in the weeks or months ahead.
The legislation was approved by the Rajya Sabha with 203 votes in favour and none against, in the 243-member House. The bill was passed after a after a seven-hour debate.
The House was adjourned till 11 pm. The Deputy Speaker PJ Kurien urged the members and the press to get some food and return by 11 pm.
The main objective of the GST is to eliminate excessive taxation. GST is a uniform indirect tax levied on goods and services across a country. Many developed nations tax the manufacture, sale and consumption of goods using a single, comprehensive tax. The roadmap for implementation of GST will be announced tomorrow, said Revenue Secretary Hasmukh Adhia.
“The GST bill will empower the states, will increase revenue of states as well as Centre. It’ll ensure that there is ‘no tax on tax’ “finance minister Arun Jaitley said on Wednesday in the Lok Sabha.
It was the Congress-led UPA government that was the first one to table an iteration of the bill, which it did on 2011. It couldn’t pass the bill then due to opposition disagreement. Then the BJP-led NDA tabled another version of the bill in 2014. That couldn’t pass because this time, it faced disagreement on some of the provisions of the bill from its opposition, mainly the Congress party.
For this 2016 version of the bill, Union finance minister Jaitley held several rounds of consultations with opposition parties and state governments. His attempt was to bring everyone on board, because, notionally, most parties are in favour a single tax regime.