Finance Minister While presenting the amendments in the upper house of the parliament, Jaitley said the GST will convert India into one economic market with one uniform tax rate and will enable seamless transfer of goods across the country.
“The GST will empower states, will increase revenue of the states and the Centre and will ensure there is no tax on tax,” said Jaitley in the Rajya Sabha.
Jaitley thanked the opposition, which has been protesting against the bill for a long time now.
“There has been a major consensus building that has taken place. I am extremely thankful to all opposition parties. 2/3rd of the voting power in the GST council belongs to states. 1/3rd belongs to the Centre,” said Jaitley.
Meanwhile, former finance minister
Chidambaram said the Centre’s tone has changed and he was glad that UPA’s concerns were addressed.
Now that the GST has received the political consensus and the amendments are passed in the Rajya Sabha, here’s what will happen next:
1. GST Council: After the Rajya Sabha passes it, the GST Bill will go to the GST Council, comprising Finance Minister Arun Jaitley, MoS in charge of Revenue, Minister in-charge of Finance or Taxation, or any other Minister, nominated by each state. The decisions will be made by three-fourths majority of votes cast. Any disputes arising out of recommendations will be rested by the council itself.
2. Details to be worked out by the council: The council, which is formed by the President, will make recommendations on taxes to be subsumed, exemptions, the rate of GST, special rate/rates for specified period, date from which GST to be levied on crude, high speed diesel, natural gas, aviation turbine fuel and petrol.
3. Winter Session: The council may take time till November to form all recommendations in the GST, which will come up in Winter Session again to finally become a law. The GST is expected to get rolled out from April 1, 2017.