Today Nagaland, Sikkim & Telangana’s Legislative Assembly ratified the Goods and Service Tax (GST) Constitution Amendment Bill.
Sikkim on Tuesday ratified the Constitution Amendment Bill on Goods and Services Tax (GST), becoming the 12th state to have passed the landmark tax reform.Thirteen states Assam, Bihar, Chhattisgarh, Delhi, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Nagaland, Telangana and Mizoram have already ratified the Bill.
Once 16 states ratify the Constitution amendment, and the President notifies it, the stage will be set for formation of the GST council, which will be the authority on deciding rates. Once the rates are decided, the upper limit will be included in the bill that will be moved in the Centre.
At least eight states have already shown positive sign to the Constitution amendment bill that was approved by Parliament. To ensure implementation of GST, the bill needs to be ratified by at least 15 out of 29 state assemblies. It is set to cross the halfway mark comfortably despite the lukewarm response from some non-NDA ruled states. Several states have convened special sessions of their state legislatures to discuss the Constitution amendment bill on GST. Rajasthan is expected to give its nod during the assembly session that has been convened from September 1.
The proposed levy will be a single tax that will cover all levies at the Centre and state levels, including entry tax. It is a value-added tax, which means a levy at each stage of production, sale or consumption will be set off against taxes paid in the previous stage. It is expected to benefit consumers and help government revenues and add to overall economic growth.
Three non-NDA ruled states Himachal Pradesh, Bihar and Delhi have approved the bill. Kerala and Uttarakhand have convened special sessions to give the go-ahead. NDA-ruled Maharashtra too is expected to join the list of approvers at the one-day session on August 29. The government has discussed the issue with all parties to ensure smooth passage and with the Shiv Sena on board, the bill is expected to be approved.
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