Lok Sabha approves GST Bill, paves way for uniform tax regime

The Lok Sabha has passed a vital legislation to introduce the Goods and Services Tax Bill, rejecting the demand of the opposition for sending it to the Standing Committee.

Being a Constitution Amendment Bill, it was passed by two thirds majority of the members present and voting.

The Goods and Services Tax shall be implemented from April 1, 2016. It seeks to create a new indirect tax regime which will comprise various central and state levies. They include sales tax, excise and services tax except taxes on the supply of alcohol for human consumption and petroleum products. The whole process of indirect taxation in the country will change once the GST is implemented.

Speaking in the House, Finance Minister Arun Jaitley had earlier assured the states that the Centre will compensate the tax losses suffered by states for the next five years.

The bill will now be sent to the Rajya Sabha where the ruling party is in minority.