(MENAFN- KNN India) The Constitutional Amendment Bill for introduction of Goods and Services Tax a (GST) cleared first hurdle on Wednesday when Lok Sabha approved the Bill by division vote.
As expected the Congress walked out during the voting while AIADMK despite objection participated in the voting 336 members voted in favour of the Bill while 11 said 10 members registered abstain. Now the real test for the Government will be in Rajya Sabha where it is in minority. It may be noted that the Constitutional Amendment Bill requires two-third majority in both the Houses for approval.
The Government aims to introduce GST from April 1, next year. This new indirect tax regime will subsume central indirect taxes such as Central Excise and Additional Excise Duty and Service Tax besides others into Central Good & Service (CGST) and state levies such as VAT and entry tax besides others into States Good &Service Tax (SGST).
GST will reduce prices in the long run and boost economic growth, Finance Minister Arun Jaitley said in the Lok Sabha. Finance Minister reiterated that Centre will compensate for any loss to the States. This package comprises compensation for five years, additional 1 per cent taxation for the manufacturing states and keeping alcohol and petroleum products out of GST. (KNN/DB)
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.