GST bill introduced in Lok Sabha

NEW DELHI: Government today introduced a Constitution Amendment Bill in the Lok Sabha which seeks to pave the way for the Goods and Services Tax (GST), which would subsume most of the indirect taxes at the Centre and states.

The Bill tabled in the face of opposition, mainly from BJP-ruled states, seeks to amend the Constitution to confer simultaneous powers to the Centre and states to levy taxes on goods and services.

The measure is likely to be referred to the Parliamentary Standing Committee for scrutiny.

"The GST would replace a number of indirect taxes presently being levied by the central government and the state governments and is intended to remove cascading of taxes and provide a common national market for goods and services," said the Statement of Objects and Reasons of the Bill.

However, crude petroleum, diesel, petrol, aviation turbine fuel, natural gas and alcohol for human consumption have been kept out of the GST ambit.

The proposed GST would subsume most indirect taxes like excise duty and service tax at the central level and VAT on the state front, besides local levies.

The Bill provides for creation of a GST Council to be headed by the Union Finance Minister. The Council will be empowered to recommend tax rates and exemption and threshold limits for good and services.

The Council, which is to be constituted by the President, is proposed to be chaired by the Union Finance Minister, with the Minister of State for Finance, in-charge of revenue, as member.

Besides, the minister in charge of finance or taxation, or any other minister nominated by each state government, will be members.

"Every decision of the GST Council taken at a meeting shall be with the consensus of all the members present at the meeting," the Bill said.

It also proposed a GST Dispute Settlement Authority, created by Parliament, to deal with grievances of the Centre and the state with regard to GST.

"The GST Dispute Settlement Authority shall consist of a chairperson and two other members," the Bill said.

The chairperson of the authority is proposed to be a person who has been a judge of the Supreme Court or a Chief Justice of the High Court, while the members shall be persons of "proven capacity and expertise in the field of law, economics or public affairs."