The Government today introduced a Constitution Amendment Bill in the Lok Sabha to facilitate the implementation of the Goods and Service Tax (GST), an indirect tax regime that would subsume levies like excise, service tax and sales tax.
The Bill, introduced by the Finance Minister, Mr Pranab Mukherjee, seeks to amend the constitution with a view to confer simultaneous powers on the Centre and states to levy taxes on goods and services.
“The GST would replace a number of indirect taxes presently being levied by the central government and the state governments and is intended to remove cascading of taxes and provide a common national market for goods and services,” said the statement of objects and reasons of the Bill.
The Bill provides for creation of a GST Council to be headed by the Union Finance Minister. The council will be empowered to recommend tax rates and exemption and threshold limit for goods and services.
Besides, the Bill proposed a GST Dispute Settlement Authority to deal with the grievances of the Centre and the state with regard to GST.
The GST, which is considered to be a major tax reform, has been pending for the last four years due to differences between the Centre and some states over the structure of the new tax regime.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.