The Constitution (122nd Amendment) (GST) Bill, 2014 Gets President’S Approval [ Current News (Concise) - ]

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Finally the Constitution (122nd Amendment) (GST) Bill, 2014 gets approval of President Pranab Mukherjee under the Article 111 of the Constitution and now bill becomes law officially and opens road to roll out a new indirect tax rule with this India will become one tax nation.

Key Facts:

  • Now after the president approval the Bill, GST Council will decide the tax rate, cess and surcharges and the council will be headed by Union Finance Minister Arun Jaitely.
  • After this the Central and State Governments will respectively pass the Central GST, Integrated GST and State GST laws.
  • Previously, in August 2016 the Bill was passed by the Parliament and then circulated to the State governments for approval because it needs 50% legislative Assemblies of states (15 states of total 29).
  • Assam becomes first state to ratify it. And letter it was approved by Bihar, Jharkhand, Chhattisgarh, Himachal Pradesh, Gujarat, Madhya Pradesh, Delhi (UT), Nagaland, Maharashtra, Haryana, Sikkim, Mizoram, Telangana, Goa, Odisha, Rajasthan, Arunachal Pradesh and Andhra Pradesh.

 About Goods and Services Tax (GST) Bill:

  • GST is complete indirect tax on manufacture, sale and consumption of goods and services throughout India, to replace taxes levied by the Central and State governments to bring uniform indirect tax regime throughout the country.
  • The Constitution (122nd Amendment) (GST) Bill, 2014 passed by Rajya Sabha on August 3, 2016.
  • It will be significant and game changer economic reform in India. GST will simplify indirect Tax structure, Tax Incidence, Tax Computation, Tax Payment, Compliance, Credit Utilization and Reporting of India. It will be single indirect tax across the nation which formed unified common market.
  • GST will be come in to force from April 2017 and all Tax payers have to be GST compliant to test system changes in time.

Benefits

  • GST will be efficient tax system and will make business easier both in online and offline but it will be more beneficial for online business.
  • Tax rates will gets lower
  • Disregard classification disputes
  • Multiplicity taxes and their cascading effects will be eliminated
  • Tax structure of compliance procedures will be simplified
  • Center and State tax administrations will work in coordination so that duplication and compliance costs will be reduce

- Published/Last Modified on: September 9, 2016