India`s biggest tax reform one step closer to July 1 rollout, Lok Sabha passes four GST Bills

New Delhi: Lok Sabha on Wednesday passed all four GST Bills to make India's new tax regime effective from July 1.

The Central GST Bill, 2017; The Integrated GST Bill, 2017; The GST (Compensation to States) Bill, 2017; and The Union Territory GST Bill, 2017 were passed after negation of a host of amendments moved by the opposition parties.

Replying to a debate on the four Bills related to GST in the Lok Sabha, he said all other taxes like entry tax in states will be removed once the GST is in place.

Noting that both the central and state governments are pooling their sovereignty to have this tax regime, he noted that India, despite being one political entity, remained different economic entities with states having different taxes.

Keep watching this space for Live Updates on the GST Bill Debate

-Clause by clause voting on GST amendments underway in Lok Sabha

FM Jaitley's reply to the debate on passing GST Bills

-Decision to bring real estate within the GST ambit will be taken within one year of the rollout of the new indirect tax regime

-GST implementation will make goods cheaper and ensure free flow of goods and services

-Not just Parliament, even State Assemblies have power in GST

-GST Council has been given power to make recommendations on Model Law

-Constitution makes it clear that recommendations will be recommended by GST Council

- There is no free flow of goods and services in the country currently

-There is a cascading effect where there is tax on tax

-Nature of economic activity is changing

-A lot of taxes are converging

Union minister M Veerappa Moily speaks

- What you have brought today is not a game changer but only a baby step

- This is a very serious matter, just don't take shelter under constitutional amendment

- Anti-profiteering clause of GST far too draconian

- The country has lost about 12 lakh crores because of delay in implementing GST

- Must consider interest of people

- This game-changer law was envisioned by the UPA government, somehow opposition parties at that time halted it

- It is a stolen UPA GST thunder

- Claims credit for GST push

FM Arun Jaitley's Speech

- GST is a revolutionary bill which will benefit all, adds FM Jaitley

- 12 meetings of the GST council were held to make it a process based on consensus and recommendations

- GST will ensure uniform taxation across states, says FM

- GST will put an end to tax differences

- FM Jaitley moves 4 GST Bills, 2017 for consideration and passage in the lower house

- The House is expected to hold a seven-hour marathon discussion on the bills

- The government proposes to launch GST from July 1

- It is estimated that the rolling out of the GST can add up to 2 percent to India's economic growth.

------------------------------------------------------------------------------------------------------------------------------------------------------

Earlier on Monday, Jaitley tabled the four GST related bills- the CGST, IGST, UT GST and GST Compensation Bills in Lok Sabha.

The CGST Bill makes provisions for levy and collection of tax on intra-state supply of goods or services, the integrated GST deals in taxation of inter-state movement of goods and services while the Union Territory GST Bill covers taxation in Union Territories.

The compensation bill has been drafted to give a legislative backing to the Centre`s promise to compensate the states for five years for any revenue loss arising out of GST implementation.

Once these Bills are cleared by Parliament, the states will then take up the state GST Bill in their assemblies. S-GST bill has been prepared as a model of the central GST, with each state incorporating state-specific exemptions. The government has set a target of first of July for rollout of GST, which will subsume excise, service tax, VAT and other local levies.