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Officially known as The Constitution (One Hundred and First Amendment) Act, 2016, this amendment introduced a national Goods and Services Tax (GST) in India from 1 July 2017. It was introduced as the One Hundred and Twenty Second Amendment Bill of the Constitution of India,

The Goods and Services Tax (GST) is a Value added Tax (VAT) proposed to be a comprehensive indirect tax levy on manufacture, sale and consumption of goods as well as services at the national level. It replaces all indirect taxes levied on goods and services by the Indian Central and state governments. It is aimed at being comprehensive for most goods and services.

Background

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An empowered union committee was set up by the Vajpayee administration to streamline the GST model to be adopted and to develop the required back-end infrastructure that would be needed for its implementation.

In his budget speech on 28 February 2006, P. Chidambaram, the Finance Minister, announced the target date for implementation of GST to be 1 April 2010 and formed another empowered committee of State Finance Ministers to design the road map. The committee submitted its report to the government in April 2008 and released its First Discussion Paper on GST in India in 2009. Since the proposal involved reform/ restructuring of not only indirect taxes levied by the Central but also the States, the responsibility of preparing a Design and Road Map for the implementation of GST was assigned to the Empowered Committee of State Finance Ministers (EC). In April, 2008, the EC submitted a report, titled "A Model and Road map for Goods and Services Tax (GST) in India" containing broad recommendations about the structure and design of GST. In response to the report, the Department of Revenue made some suggestions to be incorporated in the design and structure of proposed GST bill. Based on inputs from GoI and States, The EC released its First Discussion Paper on Goods and Services Tax in India on 10 November 2009 with the objective of generating a debate and obtaining inputs from all stakeholders.

A dual GST module for the country has been proposed by the EC. This dual GST model has been accepted by centre. Under this model GST have two components viz. the Central GST to be levied and collected by the Centre and the State GST to be levied and collected by the respective States. Central Excise duty, additional excise duty, Service Tax, and additional duty of customs (equivalent to excise), State VAT, entertainment tax, taxes on lotteries, betting and gambling and entry tax (not levied by local bodies) would be subsumed within GST. Other taxes which will be subsumed with GST are Octroi, entry tax and luxury tax thus making it a single indirect tax in India.

In order to take the GST related work further, a Joint Working Group consisting of officers from Central as well as State Government was constituted. This was further trifurcated into three Sub-Working Groups to work separately on draft legislation required for GST, process/forms to be followed in GST regime and IT infrastructure development needed for smooth functioning of proposed GST. In addition, an Empowered Group for development of IT Systems required for Goods and Services Tax regime has been set up under the chairmanship of Dr. Shruti Negi.

Legislative history

On 29 March 2017, CGST, IGST, UTGST and SGST compensation law passed in Loksabha

The Constitution (One Hundred and Twenty-Second Amendment) Bill, 2014 was introduced in the Lok Sabha by Finance Minister Arun Jaitley on 19 December 2014, and passed by the House on 6 May 2015. In the Rajya Sabha, the bill was referred to a Select Committee on 14 May 2015. The Select Committee of the Rajya Sabha submitted its report on the bill on 22 July 2015. The bill was passed by the Rajya Sabha on 3 August 2016, and the amended bill was passed by the Lok Sabha on 8 August 2016.

The bill, after ratification by the States, received assent from President Pranab Mukherjee on 8 September 2016, and was notified in The Gazette of India on the same date.

Ratification

The Act was passed in accordance with the provisions of Article 368 of the Constitution, and has been ratified by more than half of the State Legislatures, as required under Clause (2) of the said article. On 12 August 2016, Assam became the first state to ratify the bill, when the Assam Legislative Assembly unanimously approved it. State Legislatures that ratified the amendment are listed below:

1. Assam (12 August 2016)
2. Bihar (16 August 2016)
3. Jharkhand (17 August 2016)
4. Chhattisgarh (22 August 2016)
5. Himachal Pradesh (22 August 2016)
6. Gujarat (23 August 2016)
7. Delhi (24 August 2016)
8. Madhya Pradesh (24 August 2016)
9. Nagaland (26 August 2016)
10. Haryana (29 August 2016)
11. Maharashtra (29 August 2016)
12. Mizoram (30 August 2016)
13. Sikkim (30 August 2016)
14. Telangana (30 August 2016)
15. Goa (31 August 2016).

The amendment was subsequently ratified by:

1. Odisha (1 September 2016)
2. Puducherry (2 September 2016)
3. Rajasthan (2 September 2016)
4. Andhra Pradesh (8 September 2016)
5. Arunachal Pradesh (8 September 2016)
6. Meghalaya (9 September 2016)
7. Punjab (12 September 2016)
8. Tripura (26 September 2016)
9. Uttarakhand (2 May 2017)
10. Uttar Pradesh (16 May 2017)
11. Tamil Nadu (19 June 2017)
12. West Bengal (8 August 2017)
13. Karnataka (16 June 2017)
14. Kerala (21 June 2017)
15. Manipur (5 June 2017)
16. Jammu and Kashmir (5 July 2017)

See also

• Goods and Services Tax (India)
• Goods and Services Tax (Australia)
• Goods and Services Tax (Canada)
• Goods and Services Tax (Hong Kong)
• Goods and Services Tax (Malaysia)
• Goods and Services Tax (New Zealand)
• Goods and Services Tax (Singapore)

Notes

References

1. "Stage set for GST rollout on 1 July". 16 January 2017.
2. ^ "GST Bill: How the tax reform advanced through the years", The Indian Express, 11 August 2015
3. "Race for GST committee chairman hots up", Business Standard, 2015
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5. "All 4 GST bills passed in Loksabha PM Modi congratulated country | GST in India | GST news | GST updates | GST consultant | GST Registration". GST-SEVA. 29 March 2017. Retrieved 29 March 2017.
6. "PRS / Bill Track / The Constitution (122nd Amendment) (GST) Bill, 2014". www.prsindia.org. Retrieved 13 August 2016.
7. "President Pranab Mukherjee gives assent to Constitution Amendment Bill on GST". The Times of India. 8 September 2016. Retrieved 10 September 2016.
8. "President gives assent to GST Bill". The Hindu. 8 September 2016. Retrieved 10 September 2016.
9. "The Constitution (One Hundred and Twenty Second Amendment) Act, 2016" (PDF). Ministry of Law. 8 September 2016. Retrieved 29 September 2016.
10. "Assam becomes the first state in the country to pass GST Bill". The Times of India. 12 August 2016. Retrieved 13 August 2016.
11. "GST on the way- List of the States ratified GST". 23 August 2016.
12. "Assam becomes first state to ratify GST Bill". The Hindu. 12 August 2016. Retrieved 13 August 2016.
13. "After Assam, Bihar Assembly ratifies GST Bill". Firstpost. 16 August 2016. Retrieved 18 August 2016.
14. Varma, Gyan (17 August 2016). "GST bill: Nitish Kumar goes goodwill hunting". Mint. Retrieved 18 August 2016.
15. "After Assam and Bihar, Jharkhand ratifies GST Bill". The Times of India. 17 August 2016. Retrieved 18 August 2016.
16. "Chhattisgarh also ratifies GST Bill". The Hindu. 22 August 2016. Retrieved 22 August 2016.
17. "Himanchal Pradesh becomes fourth state to ractify GST bill". 22 August 2016. Retrieved 22 August 2016.
18. Vora, Rutam (23 August 2016). "Gujarat becomes 6th State to ratify GST Bill". Business Line. Retrieved 23 August 2016.
19. "Delhi ratify GST Bill". 23 August 2016. Retrieved 23 August 2016.
20. "MP ratify GST Bill". 23 August 2016. Retrieved 23 August 2016.
21. "Nagaland ratify GST Bill". 26 August 2016. Retrieved 26 August 2016.
22. "Haryana Assembly ratifies GST Bill". The Indian Express. 29 August 2016. Retrieved 29 August 2016.
23. "Maharashtra ratify GST Bill". 29 August 2016. Retrieved 29 August 2016.
24. "Mizoram Assembly ratifies GST". Business Standard India. Press Trust of India. 30 August 2016. Retrieved 30 August 2016.
25. "Sikkim becomes 12th state to pass GST Bill". 30 August 2016. Retrieved 30 August 2016.
26. "Telangana ratifies GST Bill". The Hindu. 30 August 2016. Retrieved 30 August 2016.
27. "Goa Assembly ratifies GST Bill". The Hindu. 31 August 2016. ISSN 0971-751X. Retrieved 31 August 2016.
28. India, News World. "Odisha Assembly Ratifies GST Bill". News World India. Retrieved 1 September 2016.
29. "Puducherry ratifies GST Bill amid Opposition protest". The Hindu. 2 September 2016. ISSN 0971-751X. Retrieved 2 September 2016.
30. "Rajasthan Assembly ratifies GST Bill". The Indian Express. 2 September 2016. Retrieved 2 September 2016.
31. "AP Assembly ratifies GST Bill". The Hans India. 8 September 2016. Retrieved 8 September 2016.
32. "Arunachal Pradesh ratifies GST Bill". India today. 8 September 2016. Retrieved 8 September 2016.
33. "Meghalaya ratifies GST Bill". Business Standard. Press Trust of India. 9 September 2016. Retrieved 9 September 2016.
34. "Punjab ratifies GST Bill". Centre for Monitoring Indian Economy. 13 September 2016. Retrieved 13 September 2016.
35. "Tripura Unanimously Ratifies GST Bill". NDTV. 26 September 2016.
36. "GST Bill passed in Uttarakhand Assembly". Financial Express. 2 May 2017.
37. "Uttar Pradesh Assembly passes GST bill". The Hindu. 16 May 2017.
38. "House passes GST Bill". The Hindu. 20 June 2017. Retrieved 20 June 2017.
39. "West Bengal assembly passes GST bill". Business Standard. 7 August 2017. Retrieved 7 August 2017.
40. "Assembly ratifies GST Bill". The Hindu. 16 June 2017. Retrieved 16 June 2017.
41. "Kerala takes ordinance route to ratify GST". The Hindu. 21 June 2017. Retrieved 22 June 2017.
42. "Manipur assembly passes GST Bill at a specially convened session". Times of India. 5 June 2017. Retrieved 5 June 2017.
43. "GST implementation in Jammu-Kashmir: President Pranab Mukherjee gives his assent". The Indian Express. 7 July 2017. Retrieved 23 February 2018.
44. "The State of Jammu and Kashmir joins GST today making the GST truly a " one nation, one tax" regime". pib.nic.in. Retrieved 23 February 2018.

External links

• GST GOV
• GST LAW

• Taxation in India
• Value added taxes
• Amendments of the Constitution of India