The Constitutional Bill for Goods and Service Tax (GST) is likely to get pass in coming monsoon session. Govt is ready with all preparations to achieve GST this time. GST is already passed in Lok Sabha many months back but was still knocking doors of Rajya Sabha, since Congress was enjoying majority over NDA. But recent elections has given a setback to Congress and major boost to NDA with an increment of 12 seats in RS seats in upper house elections.
What is GST ?
The Goods and Services Tax Bill or GST Bill, officially known as The Constitution (One Hundred and Twenty-Second Amendment) Bill, 2014, proposes a national Value added Tax to be implemented in India from June 2016. Goods and Services Tax” would be a comprehensive indirect tax on manufacture, sale and consumption of goods and services throughout India, to replace taxes levied by the Central and State governments. Goods and services tax would be levied and collected at each stage of sale or purchase of goods or services based on the input tax credit method. This method allows GST-registered businesses to claim tax credit to the value of GST they paid on purchase of goods or services as part of their normal commercial activity. Taxable goods and services are not distinguished from one another and are taxed at a single rate in a supply chain till the goods or services reach the consumer. Administrative responsibility would generally rest with a single authority to levy tax on goods and services. Exports would be zero-rated and imports would be levied the same taxes as domestic goods and services adhering to the destination principle.
Benefits of GST:
- A single levy replacing many existing taxes on Goods and Services.
- Will reduce prices in the long run and boost economic growth.
- Fillip to trade by making India a single market, No tax on tax.
- Uniformity in taxation; seamless transfer of goods and services.
- More tax revenues due to transparency for the Govt, lower tax burden for the country.
- Lower prices for consumers for many manufacturing products.
- Expected to increase export by more than 10%, add to GDP growth.
- Reduction in procedural complexity in paying taxes, less paper works.
Political scenarios are changing day by day. By regular defeats of Congress in various states, now other regional and grooming parties are taking corner from Congress. GST is good front for all parties to show that we do believe in development politics. This time Congress is discarded by Govt very smartly in Rajya Sabha over GST.
RS carry strength of total 244 seats. Any Constitutional amendment bills required two third majorities in RS, and then requirement will be 164. NDA is enjoying over 72 seats. Non NDA parties are carrying 95 seats. The total sum is 167 which are more than requirement. SP, BSP, TMC, CPM, JD(U), BJD, NCP and 10 independent parties has pledged to support GST in RS to show their commitments in development politics.
This time Congress will be the biggest loser in all fronts. His 60 seats of RS will go in vein. Once GST will pass, then Congress will be on target of Govt and BJP to inform all Indian to remark Congress for all delays in development procedures.
Congress is eyeing on Uttarakhand, Arunachal and Kashmir fiascos, will try to continue his favourite Parliament logjam on reflecting such issues. Anyhow, Congress is also fearful about his future course, coming elections of UP is a mega challenge for all parties. Every move in parliament will reflect next strategies for UP and coming state elections.
All total, it’s a win-win situation for India, we voters, BJP and Govt. whatever will happen, will add new values to all of us. Let us wait for coming monsoon sessions and enjoy this rainy season with a cup of tea and daily updates of new political strategies and new commitments of political giants.
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