GST Bill in Rajya Sabha - What is Integrated Goods and services Tax?
THE Rajya Sabha is scheduled to discuss and maybe even pass the GST Bill today. But it is not going to be the same Bill as passed by the Lok Sabha. Not only political compulsions, but drafting defects have also forced certain changes.
The Constitution Amendment Bill as passed by the Lok Sabha in clause 12 provides for the Goods and Services Tax Council to make recommendations on model Goods and Services Tax Laws, principles of levy, apportionment of Integrated Goods and Services Tax and the principles that govern the place of supply.
Now, what is Integrated Goods and Services Tax? This is not defined in the constitution, though it is covered under the proposed Integrated Goods and Services Tax Act, 2016.
The law makers seem to have realized this well in time and one of the amendments proposed in the Bill in the Rajya Sabha today is that the words, "Integrated Goods and Services Tax" are to be substituted with "Goods and Service Tax levied on supplies in the course of inter-State trade or commerce under Article 269A". Well, that is what Integrated Goods and Services Tax is all about.
Clause 18 of the Lok Sabha passed Bill stipulates, an additional tax on supply of goods, not exceeding one per cent, in the course of inter-State trade or commerce shall, notwithstanding anything contained in clause (1) of article 269A, be levied and collected by the Government of India for a period of two years or such other period as the Goods and Services Tax Council may recommend.
This 1% additional tax is proposed to be deleted.
Compensation to the States is to be more emphatically stated.
Dispute resolution is more pronounced and so is the distribution of taxes between the Centre and the States.
Keep your fingers crossed; we may be in for the most important fiscal change in the history of India. For a change, TAXATION is going to be a hotly debated issue. The Bill may be presented in the Rajya Sabha at 2 pm and the discussions and voting may go well past 10 pm. It is reported that elaborate arrangements are being made for a smooth sail of the Bill and a nice dinner later.