This Article is From Aug 12, 2016

Assam First Past The Post As States Race Towards GST

Assam First Past The Post As States Race Towards GST

CM Sarbananda Sonowal announced that Assam became the first state to ratify GST. (File Photo)

New Delhi: It is Assam after all that will make its way into history books as the first state to ratify the constitutional amendment bill that enables the Goods and Services Tax, India's biggest tax reform.

"A historic resolution was passed in Assam Assembly as Assam became the 1st State to ratify the Constitutional Amendment Bill relating to GST," tweeted Sarbananda Sonowal, who took over as chief minister at the head of Assam's first BJP government in May this year.

Assam has cleared the bill only four days after both houses of parliament unanimously passed it; on Monday, the Lok Sabha cleared amendments made to bill by the Rajya Sabha last week.
  
At least 15, or half of India's 29 states must approve the constitutional amendment for the centre to move to next steps in the implementation of GST, a single national tax that replaces a raft of indirect taxes, turning India into a unified market.

The government aims to roll GST out by April 1, 2017 and so must hurry with securing the states' approval. It has set itself a target of getting clearance from 15 states in 30 days.

The BJP has urged the nine states it governs and four that it rules with allies in the National Democratic Alliance to call special sittings of their legislatures to approve GST.

Among non-NDA governments, Bihar's Nitish Kumar and the Aam Aadmi Party in Delhi have pledged early support. Delhi is expected to pass the bill next week in a special four-day assembly session called to clear money bills.

After the states have ratified the single tax, a GST council will be set up with members from the states and the centre, which will decide on the crucial rate of tax. Parliament will then need to pass two GST- related bills and the state assemblies one each to get GST ready for implementation.
 
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