September 9, 2016

GST law is a reality now, but don’t expect a quick implementation

Full marks to prime minister Narendra Modi and finance minister Arun Jaitley for achieving what appeared extremely difficult even a few months back – the Goods and Service Tax (GST) Bill is finally a law now with President Pranab Mukherjee’s signature after it got clearance from 15 states.

Passage of the Bill last month by both the houses of Parliament, in itself, has been a major breakthrough after stiff Congress opposition to the NDA’s legislation, but with the law now in place, the real challenge is to bring the states on board to agree to a workable GST framework.

In the absence of an agreed model GST structure, the current law will just remain on paper, and getting all the states on board for this, probably, is going to be a more challenging task than getting the GST constitutional amendment Bill passed in Parliament was.


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