Assam takes lead in ratifying GST Bill

GUWAHATI: Assam has become the first state to ratify the Constitution Amendment Bill on Goods and Services Tax ( GST). The state Assembly unanimously passed the Bill on Friday after it was approved by the state cabinet earlier in the day.

"A historic resolution was passed in the Assembly, as Assam became the first state to ratify the Constitutional Amendment Bill relating to GST," Chief Minister Sarbananda Sonowal tweeted soon after it was ratified. "I am sure Assam will benefit from GST through higher economic growth and better revenue collection."

Prime Minister Narendra Modi congratulated Sonowal over the phone.

Minister for finance Himanta Biswa Sarma said the chief minister wanted Assam to become the first state to pass the amendment, as this would send a positive signal to industry.

“This is a historic occasion for us to become the first state to pass this Bill. I would like to thank the Speaker for allowing us to introduce it today after we informed him just last night,” said Sarma, who introduced the Bill on behalf of the chief minister.

Sarma said of the central portion of GST, 42% will be given back to the state. The GST will also have a special concession option for the Northeastern part of India and Himalayan states if they request reduction of taxes for any reason. Besides, these states can collect special tax during any natural calamity or disaster subject to approval by the GST Council.

The Constitution (122nd Amendment) Bill for the roll out of GST was passed by Lok Sabha on Monday. It rollout deadline is April 1, 2017.

At least 50% of states must pass what is technically the Constitution (One Hundred and Twenty-Second Amendment) Bill, 2014, for the next steps of legislative action to follow, to ultimately introduce a pan-India GST regime.

The new regime seeks to subsume all central indirect levies like excise duty, countervailing duty and service tax, as also state taxes such as value-added tax, entry tax and luxury tax, to create a single, pan-India market.