The GST Constitutional Amendment Bill has been passed through clause by clause voting with the required 2/3rd majority in the Lok Sabha ( Lower House of Parliament) which in principle gives good perspective for the Upper House voting.The Finance Minister confirmed that the 1% additional tax on inter-state supplies will have no cascading effect. The Finance Minister highlighted that the GST would increase the revenue of the States and reiterated his promise that the Central Government would support the States in case of any revenue loss.
The passing of the GST bill in the Lower House is a significant step towards the Government’s aim to implement GST by 1 April 2016. The bill has now been moved to Rajya Sahba (Upper House), in session till 13 May 2015. However, the Federal Government does not hold majority in the Upper House and is likely to face stiff opposition from the Congress Party (their members actually walked out of Lower House before today’s voting).
Bildquelle: Joachim Kant / pixelio.de