GST regime step closer to July 1 rollout : The Tribune India

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GST regime step closer to July 1 rollout

NEW DELHI:The Lok Sabha today passed four Bills to give effect to a pan-India GST regime after Finance Minister Arun Jaitley allayed apprehensions by members with regard to institution of the GST Council and the definition of agriculturists.

GST regime step closer to July 1 rollout

A fifth Bill will be passed by the state Assemblies for the legislative process to complete the rollout of the GST regime. AFP file photo



Ravi S Singh & 

Mukesh Ranjan

Tribune News Service

New Delhi, March 29

The Lok Sabha today passed four Bills to give effect to a pan-India Goods and Services Tax (GST) regime after Union Finance Minister Arun Jaitley allayed apprehensions by members with regard to institution of the GST Council and the definition of agriculturists, which purported to bring them in the tax ambit. The government plans to roll out the GST from July 1.

The four supplementary legislations — Central GST Bill, 2017; Integrated GST Bill, 2017; GST (Compensation to States) Bill, 2017; and UT GST Bill, 2017 — were passed after negation of a host of amendments moved by the Opposition parties. A fifth Bill will be passed by the state Assemblies for the legislative process to complete the rollout of the GST regime.

On the GST Council, which is empowered to fix tax rates, Jaitley said it was not aimed at compromising legislative independence of Parliament and state legislatures, as the legislative control would still remain as it is.

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The governments at the Centre and the states will incorporate them in their respective Financial Statements and Budgets. Hence, the final control will continue to be vested in them, he added.

With regard to objections from the Opposition on the term “agriculturist” being defined under the GST, Jaitley said it was for the limited purpose of their registration. “The farm products will not be taxed,” he insisted.

On why the Bills were brought under the rubric of “Money Bill”, he cited provisions of the Constitution. It enjoins that any tax matter will be under this category or will be deemed to be so.

On why real estate, liquor and petroleum products were kept out of the ambit of the GST, Jaitley said during the talks with the state governments, they had demurred on the ground that these formed the bulk of revenue. The states were concerned that they would have to forfeit revenues accruing from stamp duties.

With regard to petroleum products, these could be brought under the ambit of the regime following consensus after a year of the rollout.

The Finance Minister also justified the multiple tax rates on the ground of keeping in mind the class of commodities and their end-users. Jaitley assured that the powers and jurisdiction of the office of CAG will not be compromised as they flow from the Constitution and the CAG Act.

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Earlier, moving a motion for passage of the Bills, he said: “GST Council is the first federal institution 

in which sovereignty of states and Centre have been pooled together to decided on taxes.”

The objectives of the Bills are the same. It was to have a consolidated tax for states and the country. The uniform tax (GST) is aimed at replacing multitude of local and central laws. 

The Bills will now sail in the Rajya Sabha. As they are Money Bills, the Lok Sabha is not bound to accept the suggestions or objections of the Upper House. 

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GST bills: Cong objects, BJP hails

We support (GST) but the nuances and manner in which it (GST supporting laws) is passed is in contravention of parliamentary sovereignty... It is a historic day where Parliament’s sovereignty has been removed insofar as taxation is concerned and they have no power to abrogate. —  M Veerappa Moily, congress leader 


I think a very significant step forward has been taken. We are virtually seeing history in the making because we are now going to be transforming into a new system of indirect transaction. The GST idea has created a grey area (with regard to power of Centre and states)... Taxes will be jointly imposed by Centre and states, there will be one tax. — Arun Jaitley, Finance minister 


Our country has taken a giant leap towards economic transformation with the Lok Sabha today passing the GST Bills. Long awaited moment. — M Venkaiah Naidu, Information and Broadcasting minister

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