The Constitution (122nd Amendment) Bill, 2014 was approved by the Upper House with 203 votes in favour and none against, after a seven-hour debate. As our Prime Minister Mr. Narendra Modi marked, it indeed is a “truly historic occasion and the best example of cooperative federalism”.
1. What is a GST BILL?
Its the Goods and Service Tax Bill. It is one indirect tax for India. One nation, One tax!
You must have heard about the transfer of goods from the Manufacturer, to the Wholesaler, to the Retailer and then to the consumer; and all the application of taxes in this cycle. But, GST is important so that the consumer will only bear the GST charged by the last dealer from which the product has been purchased, with set – off benefits of all the middle stages! In short, GST will replace 17 Indirect Taxes!
It will have two major components in India – Central GST and State GST.
Both Centre and States will simultaneously levy GST across their domain, as in, State will levy and collect State GST & Centre will levy and collect Central GST.
2. Benefits of GST BILL –
3. Impact of GST on sectors –
Consumption (warehousing), logistics (more movement of heavy vehicles), house building materials (lower duties), and industrial manufacturing would likely experience a positive impact; oil & gas could see a negative impact, while cigarettes could see a negative impact too. It would be a neutral impact on other sectors!