Apart from subsuming various Central indirect taxes and levies and State taxes, the Constitution (122 Amendment) Bill, introduced in the Lok Sabha on Friday, confers simultaneous power to Union and State legislations to legislate on Goods and Service Tax (GST). All goods and services, except alcoholic liquor for human consumption, will be brought under the purview of GST.
Petroleum and petroleum products have also been constitutionally brought under GST. However, it has also been provided that petroleum products shall not be subject to the levy of GST till notified at a future date on the recommendation of the GST Council. The present taxes levied by the States and the Centre on petroleum and petroleum products, i.e., Sales Tax/VAT, CST and Excise duty only, will continue to be levied in the interim period.
Responding to the concerns aired by members, Union Finance Minister Arun Jaitley took them down memory lane to 2006 when it was mooted by the UPA in its Budget and also narrated efforts made by the present government to build a consensus on what he has often billed as the “single most important tax reform after 1947.”
Stating that GST was “originally conceived by Vajpayeeji”, he pointed out that it was pushed by both the UPA Finance Ministers. “The object behind the GST is to have a seamless transfer of goods and services across the country. Let there be no tax on tax,” Mr Jaitley said.
