The Gujarat Goods and Service Tax Bill, 2017 was passed unanimously in Gujarat Assembly on Tuesday in lines with Narendra Modi Government’s objective to make a provision for levy and collection of tax on intra-State supply of goods and services.
A special one-day session of the State Assembly was called by Vijay Rupani Government to ratify the Bill. Though Opposition Congress supported the Bill but its senior leaders, including leader of Opposition Shankersinh Vaghela, former Gujarat Minister Shanktisinh Gohil and others suggested certain changes in the Bill to be presented before the GST Council.
While presenting the Bill in the House, Deputy Chief Minister Nitin Patel, who is also holding Finance portfolio, said that the State predominantly engaged in manufacturing activities, would lose some tax income after the rollout of the new indirect tax regime under GST. However, the Central Government has promised to compensate possible loss to the State for five years, he added.
The Deputy Chief Minister further said that GST would abolish all the taxation related disputes between the States and would make Indian economy more strong. After implementation of GST, the State will lose some tax income but the Centre has agreed to provide 14 per cent compensation for the next five years, Patel informed the House.
During the discussion on the Bill, the leader of Opposition credited former Prime Minister Manmohan Singh for playing instrumental role to pass the GST Bill in Rajya Sabha recently. The Congress traditionally acted beyond party interest and in the larger interest of the nation and hence decided to support the bill in Gujarat assembly, he added.
“GST or similar taxes have been executed in nearly 190 countries. However such taxes are capped at 14.5 to 16.8 per cent even in high income countries. Congress party suggests the upper limit in the GST to be capped at 15 per cent,” opined senior Congress leader Shaktisinh Gohil.
On April 6, the Parliament had passed four legislations thereby paving the way roll out GST from July this year. Now it is mandatory to ratify the new bill in the State Assemblies. With the implementation of GST Bill, existing Value Added Tax (VAT) act will be withdrawn in Gujarat. However, the indirect tax in the form of VAT will continue to be levied on petroleum products such as petrol, diesel, crude oil, natural gas, liquor and aviation turbine fuel (ATF).