Goods and Service tax or GST is said to bring a tax reform in the country by unifying the tax collection system. This tax reform is said to be one of the biggest revolution in the Indian Tax collection system after the introduction of LPG policy by Government in 1991. GST bill was passed by Rajya Sabha on August 3rd, 2016. The taxes on different goods and services will be subsumed and would be collectively levied by the state and central government at a defined rate. It is believed that it will make India a unified market where every state can communicate with each other on the same platform.
It will not only make Indian tax collection system more simplified but will also eliminate the cascading effect of tax on tax. State and center will not levy tax separately; therefore the manufacturers and service providers could do business more freely beyond the boundaries. GST was an ambitious plan of Prime Minister Narendra Modi and now it is the turn of state government to ratify the bill with unanimous voting and eliminate inter-state tax to enjoy more competition in the market.
As Assam, Goa, Gujarat, and several other states have ratified the Constitutional Amendment Bill on Goods and Service Tax (GST), now Rajasthan has also joined the league by ratifying the bill. While the opposition was busy in blaming the Government and accusing them with baseless allegations, Rajasthan Government and its Chief Minister Vasundhara Raje was working hard on each possibility that could bring prosperity to the state and address the issues that the people of Rajasthan face in their lives. In the special monsoon session called for the ratification of the bill, the Rajasthan assembly has ratified it with a majority. On GST, Chief Minister Vasundhara Raje said that “GST will have a very positive impact and states including Rajasthan will get its advantages.”
The way for ratifying the bill was not easy as the opposition wanted to delay it by raising irrelevant issues in the house, but after the efforts of Vasundhara Raje, the bill was unanimously ratified on the second day of the special monsoon session of the Rajasthan Assembly.
As per the provisions, the Constitution (122nd Amendment) Bill, 2014, GST needed to be ratified by at least 15 state legislatures before the President can actually notify the GST Council which will decide the new tax rate and other issues.
The previous rate of tax collection was decided to be 18% but now, there would be an amendment in the rate and then the GST will come into force. Rajasthan is the 17th state to ratify the bill. Odisha was the 16th state and Assam was the first state to ratify the bill. Considered as the biggest tax reform in the country, Chief Minister has supported the GST bill and is of the opinion that it would be a push for the manufacturing and service providers sector in the country as well in the state. It will ease the tax collection system and generate more revenue for the state which could be used for the welfare of the people. It would bring uniformity in the indirect taxes nationwide and provide an opportunity to traders and manufacturers to access new markets easily. Vasundhara Raje’s constructive attitude towards GST has strengthened many hopes in people for future growth and development.
