GST Bill Passed in Rajya Sabha
Q. What will be the impact of the GST Bill passed on 3rd August, 2016?- Published on 04 Aug 16a. Will eliminate multiple taxes on firms
b. Will reduce black money
c. Will reduce logistics cost
d. All of the above
ANSWER: All of the above
The Goods & Services Tax Bill was finally passed to amend the Constitution, paving the way for one nation one tax.
- Barring the AIADMK which staged a walkout on the plea that federalism had been violated, other parties, including the Congress voted for the Bill.
- RS passed the constitutional amendment by 2/3rd majority as all parties except AIADMK pledged support.
- GST will now have two components keeping the federal structure of India in mind: The Central GST and State GST.
- Shift to the GST Bill will lead to uniform and seamless markets across the nation and it will be a uniform rate, checking evasion and boosting growth rates.
- Services like hotels, cellphone bills, air and train tickets are set to cost more.
- Goods like two wheelers, cars and SUVs as well as fans, lighting products, water heaters and air coolers will become cheaper.
- GST if set at 18 percent will be lower than 24-26 percent tax on goods but higher than 15% services tax.
- CPI inflation will go up by 20-70 basis points in the year of implementation.
- The Bill will eliminate multiple taxes on firms and help in the ease of doing business.
- It will also reduce logistics cost for firms due to elimination of inter state taxes.
- Capital goods prices will fall boosting GDP growth by 0.5 percent.
- Will reduce inflow of black money due to increased documentation.
