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Cabinet approves GST Amendment Bill

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The Union Cabinet today approved the Constitutional Amendment Bill on Goods and Services Tax, GST. The government wants to introduce the Bill in the ongoing winter session that concludes on December 23rd. The launch of GST has been hanging in balance for about seven years now as states were concerned about their revenue losses on introduction of the new tax regime.

In a compromise deal, the Centre on Monday had decided to keep petroleum out of the proposed GST in return for states agreeing to entry tax being subsumed in the new indirect tax regime proposed from April 2016. The GST Bill needs to be cleared by at least half of the states, besides Parliament, before its implementation. If implemented the tax will replace all indirect taxes levied on goods and services by the Centre and State governments.

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