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Madhya Pradesh chief minister Shivraj Singh Chauhan. Photo: Hindustan Times.
Madhya Pradesh chief minister Shivraj Singh Chauhan. Photo: Hindustan Times.

Madhya Pradesh and Delhi ratify GST

With eight states ratifying the GST legislation, it has half the required number before it can be sent for presidential assent

New Delhi: Madhya Pradesh and Delhi on Wednesday became the seventh and eight states to ratify the constitutional amendment bill for the roll-out of the goods and services tax (GST).

With eight states ratifying the landmark legislation, it has reached the halfway mark of the required number before it can be sent for presidential assent.

The Aam Aadmi Party (AAP)-led Delhi government became the third non-National Democratic Alliance (NDA)-led state government to ratify the bill.

The two non-NDA states which have already ratified the bill are Bihar—ruled by a Janata Dal (United)-Rashtriya Janata Dal coalition—and Himachal Pradesh, ruled by the Congress party.

Addressing the Delhi assembly, deputy chief minister Manish Sisodia said, “This is a major tax reform happening in the country and we are in favour of this."

He added, “This is beneficial for the government and the rights of the people. The people of Delhi will get their share of the taxes that they pay. GST bill for the first time recognizes Delhi as a state under the new constitutional amendment to Article 366, which is a step in the right direction finally."

Also Read: Gujarat becomes sixth state to ratify GST bill

Madhya Pradesh is the fifth Bharatiya Janata Party-ruled state to ratify the GST bill after Assam, Jharkhand, Chhattisgarh and Gujarat.

“Happy to share that the Madhya Pradesh assembly has unanimously passed GST bill. Extend deep gratitude to all the parties for their support. GST will reshape the country’s future with robust economic transformation. Country’s future is bright with greater financial stability," Shivraj Singh Chauhan, chief minister of Madhya Pradesh, tweeted after the bill was passed in the assembly.

Chauhan told the assembly that the bill’s implementation will increase investment in the country, leading to employment generation and economic integration.

A special one-day sitting of the state legislative assembly was convened for ratifying the bill. The bill received Parliament’s nod earlier this month during the monsoon session.

GST is a far-reaching tax reform that aims to forge a common market and remove inter-state barriers to movement of trade in goods and services. It will subsume most indirect taxes levied by the centre and the states, including excise duty, service tax, value-added tax, luxury tax, entertainment tax and entry tax.

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