Political battles on graft issue may derail GST

Discussion in 'GST' started by seema, Mar 6, 2014.

  1. seema

    seema Member

    The political differences over corruption and unaccounted money appears set to derail implementation of the much-discussed Goods and Services Tax (GST), formally scheduled to take final shape by April next year. A senior finance ministry official told Business Standard that unlike value-added tax (VAT), implementation of GST demanded full support from all states at the time of its coming into force, something difficult task for the Centre to achieve in the current scenario.He noted that legislation for the levy of GST can be introduced only after enacting the Constitutional amendment in this regard, introduced in Parliament on March 23. The Bill needs to be passed by a two-third majority in both Houses of Parliament and subsequent ratification by at least half of all state legislatures. Subsequently, the GST Bills would need to be passed by a simple majority.

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