The GST Bill, following its passage by both Houses of Parliament, has finally been ratified by a state — Assam — to set the ball rolling. Interestingly, it is the BJP-led government in Assam that took the lead and became the first state to ratify the Constitution amendment Bill related with the Goods and Services Tax.
“A historic resolution was passed in Assam Assembly as Assam became the 1st State to ratify the Constitutional Amendment Bill relating to GST,” Chief Minister Sarbananda Sonowal tweeted soon after it was ratified.
“I am sure Assam will benefit from the GST through higher economic growth and better revenue collection,” 53-year-old Sonowal added.
At least 50 per cent of the states have to pass what is technically the Constitution (One Hundred and Twenty-Second Amendment) Bill, 2014, for the next steps of legislative action to follow, to ultimately introduce a pan-India Goods and Services Tax regime.
The new regime seeks to subsume all central indirect levies like excise duty, countervailing duty and service tax, as also state taxes such as value added tax, entry tax and luxury tax, to create a single, pan-India market.