Home India Politics Bill on GST likely to be tabled in Lok Sabha on Friday

Bill on GST likely to be tabled in Lok Sabha on Friday

New Delhi : The government is likely to bring a constitution amendment bill on Goods and Services Tax (GST) bill in the Lok Sabha on Friday, sources said.

According to highly placed sources, the government on Thursday consulted opposition parties over moving the bill, which is being seen as a major step towards tax reforms, in the lower house on Friday.

The voting on the bill will, however, take place only on Monday, sources said.

Asked about the bill, Congress leader in the Lok Sabha Mallikarjun Kharge told IANS the party was not against it unless the government makes some major changes in the bill.

“We have heard that the bill may come up in Lok Sabha tomorrow (Friday)… We are not against the bill, unless government makes some major changes in it, like they did with the land acquisition bill,” Kharge told IANS.

Seen as key to facilitate industrial growth and improve the business climate in the country, the GST bill needs to be passed by a two-thirds majority in both houses of parliament and by the legislatures of half of the states in the country to become a law.

By subsuming most indirect taxes levied by the central and state governments such as excise duty, service tax, VAT and sales tax, the Goods and Services Tax proposes to facilitate a common market across the country, leading to economies of scale and reducing inflation through an efficient supply chain.

The government is trying to implement the new GST bill before April 2016.

Passage of the bill to become a law is, however, a lengthy process, as first the constitution amendment bill will need to be passed with two-thirds majority in both houses of parliament and then be ratified by at least 15 state legislatures before getting the assent of the president.

Following this, parliament and state legislatures will need to pass the GST bills.