After much deliberations, discussions and agreements between the people and parties involved, on Wednesday, Rajyasabha finally passed the constitution amendment bill that introduces Goods and Services Tax uniformly across India. It will be the 122 nd amendment and it passed with 100% votes in the upper house.
This is landmark bill and BJP has taken it a matter of priority and left no stone unturned to ensure the bill is passed. In fact after the re-organisation of states it is for the first time that the entire country would for the first time become one common market.
One of the main reasons for various parties opposing the bill is that with India being a land of extreme diversity, it is to be seen how effective one tax regime for all would be. Further, GST was being looked at as a threat to the federal structure of our country.
As far as Telangana is concerned it is yet to be seen how impactful GST would be. The initial calculations suggest that the state, in terms of revenue from taxes, will lose hundreds of crores and it is not yet clear on how the government plans to reimburse the loss (despite the assurance that it would do so for the next five years). That apart, there is no clarity on the compensation of inter-state tax on manufacturing. The act will come into force in April 2017 in 15 out of 29 states.