Major tax reform Goods and Service Tax (GST) bill will be taken up by Lok Sabha tomorrow, with virtually all political parties backing this legislation. Prime Minister Narendra Modi is likely to intervene during the debate on the Bill in Lok Sabha.
GST will replace a raft of different state and local taxes with a single unified value added tax system which made the country a biggest single market. The Bill was passed by Lok Sabha last year and now it will go back to the Lower House for incorporating the amendments approved by Rajya Sabha.
Congress leader Jyotiraditya Scindia today said that the party will support GST Constitutional Amendment Bill and asked all the MPs to be present in the House tomorrow where it is scheduled to be taken up for passage.
Aiming for early implementation of the GST, senior Union ministers have spoken to chief ministers of NDA-ruled states to ensure that the constitutional amendment is ratified by state assemblies at the earliest.
The GST Bill has to be ratified by at least 16 states in 30 days after it is passed by Parliament. The Constitution (122nd Amendment) Bill, 2014, that would lay the ground for roll out of GST regime, was passed by the Upper House after the government moved four amendments.
Once implemented, GST will subsume various taxes, including excise, services tax, octroi and other levies, and the proceeds will be shared between the Centre and the states. It is also expected to result in greater tax compliance, boosting government revenues.