BackAssam becomes first state to ratify GST bill
The Assam assembly unanimously passed the Constitution Amendment Bill on GST, taking India a step closer to the implementation of this seminal tax reform
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New Delhi: Assam on Friday became the first state to ratify the constitution amendment bill for the goods and services tax (GST) taking India a step closer to the implementation of this seminal tax reform.
The 122nd Constitution amendment bill received Parliament’s nod earlier this week and has subsequently been sent to states for their consent. The bill needs to be ratified by 50% of the Indian states before it can be sent for Presidential assent.
The government is aiming to get the bill ratified by 16 states within the first week of September to stay on course its 1 April 2017 implementation deadline. States need to pass the bill by a simple majority to ratify the bill.
The National Democratic Alliance (NDA) should easily manage to get this number. It is in power in 14 of these states. In addition, non-NDA states like Karnataka, Bihar and Kerala have also stated their intent to ratify the bill.
The Assam assembly unanimously passed the Constitution Amendment Bill on GST, news agency PTI reported. The ruling Bharatiya Janata Party (BJP) came to power in Assam earlier this year.
GST is a far reaching tax reform that aims to unite the country into a common market and remove all barriers across states. It will subsume most of the indirect taxes levied by the centre and states, including excise duty, service tax, value added tax, luxury tax, entertainment tax and entry tax.
Once the Constitution amendment bill is enacted, the government will constitute the GST Council that will take all important decisions regarding crucial issues like the tax rates and threshold and finalize the three GST laws.
The government is aiming to bring the central GST law and the integrated GST law in the winter session of Parliament. The state GST law will go to all the states for passage.
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