Assam Becomes First State to Pass the Constitution (122nd Amendment) (GST) Bill, 2014 [ Current Affairs - Economics ]
Assam became the first state to pass the constitution amendment bill on the Goods and Services Tax (GST) as the assembly consistently passed the bill in India. This bill approved by state cabinet.
This bill will have two components keeping in mind the federal structure of India:
- The Central GST (CGST)
- The State GST (SGST)
- That pass through several states, or imports, the Centre will charge another tax, the Integrated GST (IGST) for goods and services.
- Parliament and state legislatures have simultaneous powers to make laws on GST.
- This bill empowers the centre to levy an additional tax of up to 1% on the inter-state supply of goods for two years or more and this tax will add to states from where the supply originates.
- Alcoholic liquor for human consumption has been keep away from preview of GST.
GST Council will decide when GST will be levied on them. It will not apply to:
- Petroleum crude
- High speed diesel
- Motor spirit (petrol)
- Natural gas
- Aviation turbine fuel
- Centre may also levy excise duty on tobacco and Tobacco and tobacco products will be matter to GST.
GST council in as members includes :
- Union Minister of Finance (Chairman)
- Union Minister of State (MoS) for Revenue and state finance Ministers
Special Majority plus State ratification: Article 368
- It is required when a constitutional amendment bill try to change the federal structure.
- The bill has been passed by a special majority requiring a majority of 2/3rd members present and voting in both houses of Parliament. As per Article 368.
- The bill has been ratified by more than half of the state legislatures 15 out of 29 states by a simple majority.
- Published on: August 15, 2016