The Rajya Sabha passed the GST Bill yesterday. The implementation roadmap for it will be announced today.
The government will today announce the implementation roadmap for the Goods and Services Tax or GST, cleared by the Rajya Sabha on Wednesday through a constitutional amendment.
"It is only end of a beginning. The real work starts now," said Revenue Secretary Hasmukh Adhia after the Upper house of Parliament voted 203-0 in favour of the bill following a seven-hour debate.
Finance Minister Arun Jaitley has said he will push for a roll-out by April 2017 of GST, a national tax that replaces a mesh of indirect taxes to turn the country into the world's biggest single market.
To meet that date, the government needs to move quickly. The 122nd Constitution Amendment Bill will now be sent back to the Lok Sabha, which had passed it last year, for ratification of the amendments made in the upper house.
After a nod from the President, a GST Council will be set up with members from both the states and centres - two-thirds states, stressed the Finance Minister to highlight that decision-making powers on GST are skewed in favour of state governments, as regional parties expressed worry that the new tax regime would undermine states.
It is the GST Council which will recommend the rate of GST, as yet undecided and the focus of debate between the government and opposition. The Congress has warned that GST must not exceed 18% and other speakers in yesterday's debate echoed the main opposition party demanding assurances from Mr Jaitley.
"We will sincerely do everything to keep it (the GST) as low as possible," said the Finance Minister, stating that a 17 to 19% rate will be considered.
The government has agreed with the opposition that the rate of GST will be mentioned in the enabling laws that Parliament will pass next - the Central GST or CGST and the Integrated GST or IGST, expected to be brought for approval in the winter session.
The states will have to each pass their own law or the State GST.
Arun Jaitley said in Parliament yesterday that a massive IT network to support the implementation of the GST is in the works.