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Wednesday, December 17, 2014

NDA Govt Cabinet Clears The Constitution Amendment Bill on Goods and Services Tax (GST) Wednesday Dec 17,2014

The Constitution Amendment Bill on Goods and Services Tax (GST) is likely to be taken up in the ongoing session of Parliament with the Union Cabinet giving its nod to bring about long-pending indirect tax reforms.

The Bill was approved by the Cabinet late on Dec 17,2014 Wednesday evening and it is likely to be tabled in the ongoing winter session of Parliament that concludes on December 23,2014

The revised Constitutional Amendment Bill was brought before the Cabinet after the Centre and states reached a consensus on contentious issues, including those related to petroleum product taxation, which were holding up the proposed nation-wide indirect tax regime for about 7 years

In a compromise deal, the Centre decided to keep petroleum out of GST in return for states agreeing to entry tax being subsumed in the new tax regime

Note
The idea of moving towards the GST was first mooted by the then Finance Minister P Chidambaram in his Budget for 2006-07. Initially, it was proposed that GST would be introduced by April 1, 2010.

The GST Bill was last introduced in the Lok Sabha in 2011 by the then UPA government but lapsed, requiring the new NDA government to come with a new Bill.

The NDA Govt aims to roll out the Goods and Services Tax (GST) from April 1, 2016

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