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New Delhi, May 6: Goods and Service Tax (GST) Bill, a key reforms measure seeking to create a national market, was
Wednesday approved by the Lok Sabha with support from parties like BJD and TMC. The house saw a walkout by the Congress, even after a promise that the recommended tax rate of 27 per cent will be diluted. While the Constitution Amendment bill was approved by the mandatory two-thirds majority with ease, there are question marks over its fate in the Rajya Sabha where the ruling BJP-led NDA lacks majority. The Upper House is to take up for consideration the GST Bill Thursday. Congress and other parties have demanded that the Bill be referred to a Standing Committee, which has been rejected by finance minister Arun Jaitley. The Bill will then need ratification of more than half of
29 states before scheduled roll out in April next year.”The whole country would become a single market and therefore it would give a necessary fillip as far as trade is concerned,” Jaitley said while winding up a debate in the Lok Sabha. Parties like TMC and BJD had reservations over the impact of the GST on state revenues. Jaitley promised the states that they would be fully compensated for any loss of revenue arising from implementation of GST.