What is GST Bill ?
The Goods and Services Tax (GST), that seeks to replace all indirect taxes, with a uniform levy has already been approved by the Lok Sabha and was in the last session referred to a Rajya Sabha Select Committee.
The report of the Rajya Sabha Select Committee was tabled in Parliament last month. The Committee had suggested to compensate the states fully for five years for any revenue loss for GST roll out.
The panel has given its report endorsing majority of the provisions, while suggesting changes in compensation to states and definition of supply for the purpose of states levying additional 1% tax.
Indirect tax reform GST proposes to create an uniform tax rate across the country by subsuming excise, service tax and other local levies. GST can boost India’s GDP by 1-2%.
The government has two more days to pass the GST Bill. The current monsoon session of Parliament ends on August 13.
