The much awaited economic reform the ‘Goods and Services Tax Law’ is now going to become reality. The Rajya Sabha has passed the 122nd Constitutional Bill in 2014.
Like other amendments, the journey of GST in India was an easy one. There are several factors like administrative regulations, political interference, and groundwork for implementation of GST.
Goods and Services Tax is an inclusive indirect tax on manufacture, sale, and consumption of goods and services throughout India, to substitute taxes imposed by the central and state governments.
GST would be imposed and collected at every stage of sale or purchase of goods or services based on the input tax credit mode. In 2004, the Kelkar Task Force on the implementation of the FRBM Act, 2003 recommended an inclusive Goods and Services Tax (GST) based on VAT principle. Here were giving the details about the journey of Goods and Services Tax.
Also Read | Goods & Services Tax (GST) – One Nation One Tax
After that in 2006, UPA government during budget announced the suggestion to switch to a national taxation system. In 2007, an Empowered Committee (EC) of state finance ministers began drawing up a road map on the legislation of GST bill.
In April 2008, the EC concluded its report “A Model and Roadmap for Goods and Services Tax (GST) in India” comprising broad suggestions about the structure and strategy of GST.
In 2009 the EC, grounded on contributions from the Union government and states, released the First Discussion Paper on GST in India with the aim of generating a debate and generating feedbacks from all stakeholders.
In March 2010, the 115th Constitution Amendment bill was introduced in Lok Sabha to impose GST on all goods and services except those itemized. The bill was sent to the Standing Committee.
In 2013, The Standing Committee tabled its report to Parliament. However, the UPA government failed to win the support of BJP-ruled states including Gujarat forcing the legislation to lapse with the dissolution of the 15th Lok Sabha.
In 2014, The Constitution (122nd Amendment) Bill, 2014 was introduced in the Lok Sabha and passed by the House on 6 May 2015.
In 2015, in the budget speech Finance Minister Arun Jaitley declared that the government is ardent on implementing the GST by April 1, 2016. But the due to lack of majority support the bill was not tabled in Rajya Sabha till 2016. Finally, the bill was passed on 3 August 2016 by the Rajya Sabha, and the amended bill was passed by the Lok Sabha on 8 August 2016.