States of Uttar Pradesh and Andhra Pradesh passes GST Bill in the Assembly

The states of Uttar Pradesh and Andhra Pradesh assemblies have cleared the goods and services tax (GST) 2017.

In Andhra Pradesh, Finance Minister Yanamala Ramakrishnudu introduced the bill in the assembly where the members gave the green signal to the landmark bill. He later introduced the GST Bill in the legislative council where too it was given the green light.

UP assembly unanimously passed the state GST bill with all the major political parties giving the go-ahead with a voice vote. The Bill, which was on May 15, 2017, tabled in the Vidhan Sabha, was passed unanimously on May 16, 2017, through a voice vote with the Opposition not pressing for sending it to the select committee.

Initiating the discussion on the Bill, Chief Minister Yogi Adityanath termed it as revolutionary move which is in the interest of both consumers and traders.

“The GST Bill is the result of the Modi government’s move towards wider economic reforms,” he said, adding that it will bring uniformity in the tax structure.

Participating in the debate, Leader of the Opposition Ram Govind Chaudhary suggested sending the bill to the select committee for wider scrutiny.

Members of the Opposition parties said that filing of returns online three times a month would be cumbersome and suggested monetary fine in place of jail term for those who do not comply with it.

In his reply, the Chief Minister allayed their fears, giving point-by-point clarification.

“The doubts of the members over lack of computer knowledge has been taken care of… It will benefit small traders,” he said, adding that the Centre will compensate for the loss of revenue to States with the GST coming into effect.

“There is no need to be afraid of the GST… all non-BJP ruled States have also passed it. For redressing their problems, the GST Council is going to hold its meeting soon,” the Chief Minister said.

The session was convened especially for the introduction and passage of the GST Bill with the Narendra Modi government keen on rolling out the indirect tax regime from July 1.

After the Bill is passed by both Houses of the State legislature, Uttar Pradesh will join the likes of Uttarakhand, Jharkhand, Telangana, Bihar and Rajasthan whose legislatures have given their nod to the indirect tax regime.

The State government is confident that its tax revenue would increase due to the GST, which is touted as the most liberal tax structure to be adopted in the country.

Four key GST legislations — the Central GST Act, the Integrated GST Act, the GST (Compensation to States) Act and the Union Territory GST Act — were passed by the Parliament in its last session. The four legislations have since got the President’s assent.

Seen as a path-breaking step in the taxation regime, the GST is expected to create a congenial and cohesive atmosphere for business in the country.

Different indirect taxes like the central excise duty, central sales tax and service tax are to be merged with the C-GST, while the S-GST will subsume State sales tax, VAT, luxury tax and entertainment tax.

 

Source: The Hindu