Lok Sabha passes four GST Bills; India's biggest tax reform one step closer to July 1 rollout

March 30, 2017

New Delhi, Mar 30: Lok Sabha on Wednesday passed all four GST Bills to make India's new tax regime effective from July 1.

The Central GST Bill, 2017; The Integrated GST Bill, 2017; The GST (Compensation to States) Bill, 2017; and The Union Territory GST Bill, 2017 were passed after negation of a host of amendments moved by the opposition parties.

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Jammu and Kashmir will need to pass all four bills in its state assembly, on account of its special powers on taxation under the Constitution.

The Lok Sabha passed the much-awaited Central Goods and Services Tax (CGST) Bill, Integrated GST Bill, Compensation GST Bill and Union Territory GST Bill 2017, after negating all the amendments put forward by the Opposition.

Finance Minister Arun Jaitley tweeted:

Prime Minister Narendra Modi also tweeted on the occassion:

The four GST Bills were passed after an eight-hour marathon debate in the Lower House.

The government is targeting the roll-out date of July 1 for the new indirect tax regime.

Jaitley said that goods may become "slightly cheaper" once all other taxes are removed after implementation of GST.

Replying to the debate on the four bills in the Lok Sabha, he said all other taxes like entry tax in states will be removed once the GST is in place.

"Once all other taxes are removed, the cascading effect is removed, goods will become slightly cheaper," he said.

Noting that both the central and state governments are pooling their sovereignty to have this tax regime, Jaitley noted that India, despite being one political entity, remained different economic entities with states having different taxes.

"Centre and states both pooled sovereignty into one Council. It is India`s first federal decision making authority," he said.

The GST will subsume various indirect levies of the Centre and states like service tax, excise duty, octroi and value added tax (VAT).

The CGST Bill will enable levy and collection of tax on intra-state supply of goods and services or both by the central government.

Actual tax rates would be as per a four-tier rate structure of 5, 12, 18 and 28 per cent as approved by the GST Council.

Clarifying on the tax rate on petroleum products in the regime, Jaitley said that the Council has decided that the petroleum products though they have been included under GST, will remain zero rated as of now.

"The Council decided that we will take up the issue of petroleum products in a year after implementation of GST. Today, constitutionally petroleum products are under GST, but will be zero rated. So once Council decides it can be taxed under GST, we won`t need to amend the Constitution," he said.

Jaitley said that once implemented GST will have a significant impact on the taxation system as the entire system will be restructured.

He said that the nature of economic activity today is changing and the objective of GST is to have "free flow of goods and services pan-India, with one tax and one interface with one assessing officer".

The system will be more efficient, is not easy to breach and has higher compliance, he added Prime Minister Narendra Modi also tweeted on the pasisng of 4 GST Bills

Following the Bill`s passage, Jammu and Kashmir Finance Minister Hasib Drabu told reporters that the state`s own constitution, allowed under special dispensation, requires CGST to be ratified by the state legislature.

"We will go to our assembly and get it passed before the target date of July 1," he said.

"We will start the process (ratification) sometime in May or June and meet the July implementation target," he added.

Jammu and Kashmir is the only state in the country with powers to tax services.

Speaking in the Lok Sabha debate earlier, Congress leader M. Veerappa Moily pointed out that it was the previous Congress-led United Progressive Alliance government which brought in the GST bill.

"This important game-changer enactment was envisioned by the UPA government. It should have been implemented at the time, but some opposition parties then felt that it has to be halted," he added, alluding to the Bharatiya Janata Party, which is in power now.

Indian industry, which has welcomed the GST Bills passage in Parliament, has however, called for a postponement of the targeted implementation date of July 1, to allow it to prepare adequately for the GST rollout.

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News Network
May 8,2024

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Nearly 80 Air India Express flights were canceled after the cabin crew members went on a "mass sick leave", official sources said on Wednesday.

As many as 79 international and domestic flights were canceled after about 300 senior cabin crew members reported sick at the last minute and switched off their mobile phones.

The Air India Express management is currently trying to reach out to the crew, who are protesting against the new employment term at the Tata Group-owned airline, sources said.

The cabin crew has also alleged that there was a lack of equality in the treatment of the staff after the merger with Tata Group. They claim that some staff members were offered lower job position despite clearing interviews, sources said.

"A section of our cabin crew has reported sick at the last minute, starting last night, resulting in flight delays and cancellations. While we are engaging with the crew to understand the reasons behind these occurrences, our teams are actively addressing this issue to minimise any inconvenience caused to our guests as a result," an Air India Express spokesperson said.

"We sincerely apologise to our guests for this unexpected disruption and emphasise that this situation does not reflect the standard of service we strive to provide," the spokesperson added.

Guests impacted by cancellations will be offered a full refund or complimentary rescheduling to another date, the airline said.

Several passengers took to their social media accounts and complained about the sudden cancellations of their flights. They said that they had "no information" about the cancellations.

Some "very disappointed" passengers on X said that they had reached the airport when they were informed that their flights were canceled.

"We apologise for any inconvenience. Please be informed that your flight has been canceled due to operational reasons," Air India Express said in response to one of the posts on X.

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News Network
May 5,2024

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Maharashtra Leader of Opposition Vijay Namdevrao Wadettiwar waded into controversy after he alleged that an RSS-affiliated cop, and not terrorist Ajmal Kasab, killed former state anti-terrorism squad (ATS) chief Hemant Karkare during the 26/11 Mumbai terror attack.

In a video statement released on Saturday, the Congress leader alleged that the bullet that killed IPS officer Hemant Karkare did not come from the gun of Ajmal Kasab or any of the other nine Pakistani terrorists involved in the attacks.

Instead, he claimed it came from the weapon of a police officer allegedly "dedicated to" the Rashtriya Swayamsevak Sangh (RSS).

Wadettiwar also accused Ujjwal Nikam, the special public prosecutor in the case and a BJP Lok Sabha candidate from Mumbai North Central, of suppressing this information, labeling him a "traitor."

He questioned the BJP's decision to nominate Nikam for the Lok Sabha polls, accusing the party of protecting traitors.

“During the probe, key information was out. However, it was suppressed by Ujjwal Nikam, who is a traitor. My question is, why is BJP protecting a traitor and nominating such a person for Lok Sabha polls? By doing this, BJP is protecting traitors," Wadettiwar alleged, Times of India reported.

These allegations drew strong responses from Nikam and Deputy Chief Minister Devendra Fadnavis.

Nikam condemned Wadettiwar's statement as "baseless and irresponsible," expressing pain at the doubts raised over his integrity.

He emphasized the legal steps taken to convict Kasab, calling Wadettiwar's remarks an insult to the victims of the 26/11 attacks.

“What a reckless statement is being made. I am pained by such baseless allegations, raising doubts over my integrity. It clearly reflects the level of electoral politics. I never thought politicians will stoop to such low levels. For political gain? He (Wadettiwar) is insulting not me, but the 166 departed souls and all persons injured in the 26/11 attacks," Nikam said.

He added, “They (Congress) hold Kasab as innocent. Even Pakistan had accepted that Kasab was involved in the conspiracy and in the terror attack on India and was guilty".

He said Indians very well know the legal steps he had taken to ensure Kasab’s conviction.

Nikam said citizens of the nation would on 4 June, the day of results for Lok Sabha polls, give their reply to such allegations, adding he wished not to dignify the “desperate disinformation” with a further response.

Meanwhile, BJP leader and Deputy CM Fadnavis said, “Our alliance is with Nikam, while Congress has joined hands with Kasab".

Shiv Sena spokesperson Kiran Pawaskar said NIA should arrest Wadettiwar and ask him why he was defending Kasab.

Pawaskar criticized the Congress for allegedly supporting terrorists and expressed surprise at the silence of Shiv Sena chief Uddhav Thackeray on the matter.

“From Wadettiwar’s statement, it appears Congress is supporting terrorists who attacked Mumbai. More shocking is the fact that Sena (UBT) chief Uddhav Thackeray has maintained silence over the episode,” he said.

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May 14,2024

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Jerusalem: Israel and India will continue to deepen their bilateral ties and lead to greater prosperity, Foreign Minister Israel Katz said on Tuesday.

Katz was responding to India’s External Affairs Minister S Jaishankar’s message on the occasion of Israel’s 76th Independence Day.

“Thank you for the warm wishes, FM @DrSJaishankar. In celebration of our Independence Day, Israel and India will continue to deepen our ties and lead to greater prosperity,” Katz said in a post on X.

Earlier in the morning, Jaishankar posted on X a 2:03-minute video showcasing the India-Israel relationship through photos of various bilateral meetings between Prime Minister Narendra Modi, himself, and other Indian ministers with Israel Prime Minister Benjamin Netanyahu and other ministers.

“Congratulate FM @Israel_katz and the people of Israel on the occasion of the 76th anniversary of Israel’s Independence. Mazel Tov!,” Jaishankar posted along with the video and repeated the same message in another post in Hebrew.

Meanwhile, President Droupadi Murmu wished her Israeli counterpart Isaac Herzog as she said on X, “I join the people of India in conveying our best wishes to President @Isaac_Herzog, and the people of Israel on the 76th anniversary of Israel’s independence.”

Lok Sabha speaker Om Birla too took to X to post his greetings to his counterpart Amir Ohana, the Speaker of The Knesset: “On the occasion of Israel’s 76th anniversary of independence, I congratulate Speaker of the Knesset @AmirOhana and the people of Israel.”

Both Murmu and Birla also included greetings in Hebrew.

“Thank you, my dear friend @ombirlakota. May the friendship between our nations grow stronger,” Ohana replied to Birla and also added a line in Devnagari script in Hindi, loosely translated as, “Thank you my dear friend Om Birla. May the friendship between our countries be stronger.”

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