Let us all be a party to the largest economic change in the country: WELCOME GST Era

The 101th Constitutional Amendment bill passed by both the houses of Parliament has paved way to the long awaited financial change which the country intends to bring here.

By the sources, it is measured that as on day, only 30 percent trade in India is declared trade and this yields in utilization of black money as well letting the black money float into the general stream of the country. This makes the progress of the country slow and also reduces the value of the currency and causes inflation too.  With this, the free trade is curbed and a business keeps dual and triple accounting leading to rampant tax evasion as well as it restricts trade.

To ensure free trade, the concept of GST came up. This could only be possible by this Constitutional Amendment.  Thanks to all the Political Parties, which, to the interest of nation, has adopted the changes brought in the Constitution of India by 101st Constitutional Amendment Bill passed by Both the Houses of Parliament? Out of 15 states required to pass the bill, till yesterday, 7 states have passed this bill. This paves way for this change.

Hon’ble Finance Minister, Mr. Arun Jaitley, in his speech stated that the aim of the amendment is to enforce the principles of GST from April 2017. The Amendment was subsequently ratified by Lok Sabha, unanimously and has already been consented to by 7 States i.e. Assam, Bihar, Jharkhand, Himachal Pradesh, Chattishgarh, Gujarat, Madhya Pradesh.

It is however, important to note that the Bill itself is a facilitator and lays down the constitutional framework and more importantly the constitutional limits which the lawmakers of both the States and Union have to adhere to in order to make GST a reality.

Powers of state to levy taxes rests in the amended state list, which empowers the state to levy taxes on Liquors, taxes on Diesel,

The state laws shall be confined to this only. The most significant move on this is the Contitution of GST Counsel under article 279A. This shall recommend the subjugation of certain taxes into GST. It shall recommend as to what goods and service shall be exempt and thereafter frame GST Laws accordingly.  This shall ensure the draft GST Bill to emerge. The rules shall follow thereafter.

The Government with this intention, means to minimize litigation with the ensured growth not only in the economy but it intends simplification of the application of laws also thereupon.

I have been constantly looking into the articles and discussions in the net as well in the seminars which are being held in this respect.  Many of this talk over presumptions which came out of the model GST bill proposed to be put in parliament when this Constitutional  amendment was not passed.   In the conventions or seminars,  why not we project the simplification in administration of law coming for this. Question is for the classification of Goods to be harmonized. Question is the collection. Question is the administration of Data and sharing the same with both the limbs of revenue. Question is the simplification of process. Question is to make the compliance easier and not cumbersome.

Second note shall be a proposal as to how to harmonize the structure for the object to be achieved. Let us all be a party to the largest economic change in the county.