GST Bill to be introduced but not passed in winter session 2014

Minister of State for Finance Jayant Sinha on Thursday said the Constitution Amendment Bill on Goods and Services Tax (GST) will be introduced in the parliament. However, the bill would not be discussed or passed in the current session.

"This bill is impossible to reject it in session and therefore it will be introduced. However, we will not be able to discuss and pass it in this session," said Sinha.

"The change which is coming in the constitution is very difficult but is very significant. In the next two or three months we will continue to work on that. The constitutional amendments that we will be introducing will be comprehensive. It will make the Indian economy a lot more economic which is a very important reform measure. The fact that we were able to make the consensus is good," he added.

Earlier on Thursday, the Union Cabinet had approved the Constitution Amendment Bill on GST, clearing the way for its introduction in the ongoing session of the Parliament to bring about long-pending indirect tax reforms.

The GST will include indirect taxes like excise duty and service tax at the central level and value added tax (VAT) and local taxes on the states front.

Earlier, the GST Constitutional Amendment Bill, which had been introduced in the Lok Sabha in 2011, had lapsed. The incumbent National Democratic Alliance (NDA) Government will now be required to come up with a fresh bill.

According to reports, state governments have demanded that petroleum, alcohol and tobacco should be kept out of the purview of the GST.

“GST will play a critical role in next level of growth. For India to truly realize its potential as an international trade hub, we need globally accepted policies & regulations like GST, to add efficiency in the system along with cutting down unnecessary costs and making it affordable. From a macroeconomic level, GST for the economy if implemented to its fullest, will be a game changer," said Shashi Kiran Shetty, Executive Chairman, Allcargo Logistics.