Lok Sabha begins debate on GST Bill; It’s path-breaking measure, says Jaitley

NEW DELHI : The Lok Sabha today began discussion on the Goods and Services Tax (GST) Bill with Finance Minister Arun Jaitley piloting the four related draft legislation for passage in the Lower House.
In his remarks, moving the Bills, Mr Jaitley said the new proposals seek to achieve a path-breaking purpose wherein federal structure of the Indian Constitution comes into play in more ways than one.
Prime Minister Narendra Modi also attended the proceedings. ”The law that we are dealing here is a unique experience…it gives the power to legislate laws for both the states and the Centre under Article 246 A,” Mr Jaitley said, adding GST Council will go down in the history as the first federal institution created in the country.
He said a GST Council was set up and in these 29 states and two Union Territories of Delhi and Puducherry were involved.
The GST Council was given power to recommend to both the states and the Centre.
“We held 12 meetings and every effort was made to ensure that the Council functions in consensus,” Mr Jaitley said.
The Central GST Bill would make provisions for levy and collection of tax on intra-state supply of goods or services.
While 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 Minister said.
”There is also a ‘compensation bill’ that would 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,” Mr Jaitley said.
“Efforts have also been made so that consumers are not over taxed,” he said.
A statement on reasons for the Central GST bill said, “it is expected to reduce cost of production and inflation in the economy, thereby making the Indian trade and commerce more competitive.”
The CGST Bill also provides for e-commerce companies to collect tax at source at a rate not exceeding 1 per cent of net value of taxable supplies, out of payments to suppliers supplying goods or services through their portals.
Once these Bills – pushed by the government as ‘money bills’ are cleared by Lok Sabha, they will go to the Rajya Sabha. After final nod of Parliament, the states will then take up the State GST Bill in their Assemblies.  (AGENCIES)

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