GST bill passed in Lok Sabha

Apparel - - Market Watch -

The Lok Sabha has signed off on the last batch of bills on GST and that means that In­dia is just a step away from rolling out an in­di­rect tax regime that will, for the first time, eco­nom­i­cally unify the coun­try.

This game-chang­ing tax re­form ini­tia­tive also puts in place a tem­plate for co­op­er­a­tive fed­er­al­ism be­cause the states, thanks to the cre­ation of the GST coun­cil, are as much stake­hold­ers as the Cen­tre.

The roll­out has been made pos­si­ble af­ter the states and the cen­tre agreed to merge their ex­ist­ing tax­a­tion pow­ers to evolve a uni­form tax struc­ture.

To be sure, the state leg­is­la­tures will also have to give their nod to the state GST bill to fa­cil­i­tate a pan-In­dia roll­out of the tax from July 1. This sem­i­nal piece of tax re­form will be ready for im­ple­men­ta­tion af­ter the GST Coun­cil ap­proves the clas­si­fi­ca­tion of com­modi­ties un­der var­i­ous slabs.

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