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Lok Sabha passes GST Constitutional Amendment Bill

May 6, 2015 - New Delhi

  • The Lok Sabha has passed the Constitutional Amendment Bill on Wednesday. The Bill will bring in the goods and services tax (GST) in place and will remove a number of central and state-level taxes and levies.
  • Speaking in the Parliament on the ambitious tax reform, Finance Minister Arun Jaitley said that the bill is 12 years in making and will remove the cascading effect of the current tax system. It will boost compliance and will spur growth by creating a national market, he said.
  • The Bill was voted in favour by 352 members and 37 have voted against it. Principal Opposition party Congress has staged a walkout while the voting was on. The Congress said that they support the tax in principle, but has asked the Government to refer to the changes made by BJP in the bill to a standing committee for review.
  • Though the bill is passed in Lok Sabha with ease, the Government will find it difficult to pass it in Rajya Sabha. The ruling BJP doesn't have sufficient members in the upper house of the Parliament.
  • The Government's plans to roll out the new tax by 1 April 2016 will be jeopardized if it fails to push the bill in Rajya Sabha within the next week.

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