Bihar likely to be the second state to pass GST Bill

CM Nitish Kumar calls FM Jaitley and offers to have the Bill passed on August 16

Bihar is likely to be the second state to pass the GST (Goods and Services Tax) Constitution Amendment Bill, with Chief Minister Nitish Kumar calling Finance Minister Arun Jaitley and offering to have the Bill passed on August 16.

Although the Bihar Assembly session ended on August 4, this will be a special session, signifying how keen Bihar is to pass the Bill which the state bureaucracy reckons will net it Rs 8,000 crore as additional revenue annually.

Although the ruling Janata Dal United government in Bihar is bitterly opposed to the Narendra Modi led National Democratic Alliance government in the Centre, Bihar has staunchly stood by the government on the GST issue.

The proposal for the GST, India's biggest ever tax reform, was cleared by the Rajya Sabha on August 3.

On August 9, the Lok Sabha unanimously passed the constitution amendment bill and now the GST must be cleared by at least 15 of the 29 states. The government aims to accomplish this within the next 30 days.

What Parliament and then states are in the process of approving is an amendment to the constitution that gives the government new taxation powers. Then, separate legislation will be sent for review on the rate of the new GST, as well as its scope.