3 major obstacles on Goods and Service Tax implementation (GST)

 

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:

GST 5

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:

Share below your thoughts about Goods and Service Tax.

 

 

Also Read

 

Click here to know GST rate on Goods and Services

 

GST Exemption list of goods and services

 

Find HSN number or Service tariff code for GST

 

GST registration guidelines

 

Indian GST Laws

 

How to export your goods?


Is Letter of Credit LC safe for an Importer?
Is ON BOARD CERTIFICATE required for LC negotiation
What is VACIS exam in US import customs clearance
When can an exporter release bill of lading from shipping company?
When does exporter get EP copy of shipping bill after customs clearance
Bank finance to exporters as pre shipment finance
What is crystallization of export bills? How does delinking of export bills work?
Liquidation of Bank pre shipment finance to exporters
Running account facilities for bank export finance
Pre shipment bank finance to suppliers for exports through other agencies
Conditions to get export loans from banks to sub suppliers
Are construction projects eligible for Bank pre shipment loan?
How to import Optical, Photographic, Medical Instruments and Accessories
Types of Export Containers
Dimension of Cargo Containers
Difference between standard dry container and Flat rack container
Types of Export Containers
Dimension of Cargo Containers
JPDEPC,Jute Products Development and Export Promotion Council
Tea Board
SRTEPC,Synthetic and Rayon Textiles Export Promotion Council
SQEPC,Sports Goods Export Promotion Council
How to export your product?
Click here to know HS code of your product
What is the ITC code (Indian Tariff Code) of your product?
12 Major risks and solutions in Imports and Exports


Discussion Forum

You can also share your thoughts about this article.
Any one can answer on question posted by Readers