What is Goods and Service Tax (GST)
GST, frequently asked Questions
3 major obstacles on Goods and Service Tax implementation (GST)
11th October, 2015
In this post, we discuss about major three road blocks on passing GST bill to be implemented from 1st April, 2016.
Why GST bill pending to become an Act in India?
Over the past 15 years, we have been hearing about GST in India. Recently Lok Sabha passed GST Bill. When we discuss now today, Rajya Sabha also to be passed to become Act.
Why Goods and Service Tax bill is pending? What are the present road blocks to pass GST bill in India today?
Goods and Service Tax bill (GST) is pending to pass due to three reasons mainly:
Government is in minority in Rajya Sabha
As you know, as per Indian constitutional system, any bill has to pass in Lok sabha and Rajya sabha to become an Act. At present, when writing this article, present ruling BJP government has no majority in Rajya Sabha. As we know, GST bill cannot pass without the support of opposition party or others at the present situation. If GST constitutional bill fails to pass before April, 2016, the central government is planning to implement the same by any time before next financial year starting from 01st April, 2017. In other words, government may not wait for next financial year, but starts implement any time immediately after gaining majority in Rajya Sabha, but before 1st April, 2017.
Opposition party’s stand
Another reason for pending of GST bill is that the main opposition party, Congress is adamant to send the bill to selective committee. The selective committee can make necessary changes in the structure of GST bill. This helps opposition party to include their policy related suggestions in to Goods and Service bill. This black may be removed, once Rajya Sabha becomes majority to present central ruling government.
Many states lose revenue due to introduction of GST.
Many states are worried on lose of revenue on implementation of GST. Although there is a proposal to remove this obstacle, state governments who lose revenue are still under confusion. As per, central government, this obstacle has already been removed by resolving issues related.
This post explained about major three hindrances on implementation of Goods and Service Tax (GST) before dead line – 1st April, 2016. If you would like to comment on Goods and Service Tax, write below:
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