LS Approves GST Bill: Key Points to Know

BENAGLURU: Lok Sabha paved way for the Uniform Tax Regime, the Goods and Services Tax (GST) . GST is one of the dominant subjects of BJP government’s finance agenda. Even after Congress satged a walkout, the bill has been passed by Lok Sabha with a clear 352 votes majority. The government is finally set to institutionalize the GST Bill in the parliament through a constitutional amendment. GST, is a comprehensive tax levy meant to simplify and harmonize the indirect tax regime in India. It was first proposed by the then Finance Minister, P. Chidambaram and was meant to simplify the tax system in India.

Both BJP and Congress are now onboard for the passage of the bill which is likely to win two-thirds majority required for a constitutional amendment. Here are key points mentioned in the bill—

Defining GST

GST is a comprehensive tax levy on manufacture, sale and consumption of goods and services at a national level. GST is a model which is in place in most of the developed countries, which help them boost the economy.

GST will replace all the current indirect taxes in the country, subsume various Central indirect taxes, including the Central Excise Duty, Countervailing Duty, Service Tax, etc. GST if implemented will subsume State Value Added Tax (VAT), OCTROI and entry tax, luxury tax, etc. GST rates will be uniform across the country.

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