Aug 042016

( GST Bill 2016-17 in Hindi / Eng PDF | GST Meaning, effects, implementations and Rates

The central government of India has proposed to pass another type of indirect taxes on the manufactured, sale and consumed products in 2014. However this value added tax namely Goods and Services Tax Bill could not be passed in the mentioned year due to the rift between state and central regarding the bill. At that point of time Congress party along with the several state governments had denied accepting the GST bill as they have shown a lot of loopholes in the bill. In August 2016, finally after couple of years the states, even the Congress party had given a nod to the bill and it gets passed.

What is GST Bill | GST Meaning

Goods and Services Tax Bill is, as mentioned, a type of indirect tax levied on the manufacturing, sales and consumption of any goods and services across India. In India, several state taxes are levied in these three mentioned processes. After GST, there will be only one time tax that will be levied on the goods and services consumed within the boundary of the nation. Central government calls it ‘One nation one tax’ as after passing of the bill suppliers will have to bear onetime indirect tax for their business.

GST Bill 2016-17 in Hindi

Why it is needed?

Goods and Services Tax is needed for the reforms of the Indirect tax system in India. As mentioned in the previous paragraph that India does have several taxes in different stages of production and consumption. But under GST there will be one rate of tax that will be borne by the consumer. Considering the consumer’s point of view they will have to pay a much lower rate of taxes than earlier times when it was 25-30%.

On the other if the supplier is purchasing the goods and services for general commercial purpose then he / she can claim the tax credit as well. This tax will be an integration of the central as well as state taxes and will become one single tax for one nation.

Why State Government opposed it?

The state government had opposed the bill at the first place by raising few points against rules and policies regarding the bills. According to the states, the bill does not say anything about the entry tax and the petro tax. The State Empowered Committee Chairman had stated that the bill is not clearly depicting about the fact that if the state undergoes loss of revenue due to levying the GST for the next five years then how the Central will compensate the loss. Even it was not clear that whether they will compensate the revenue loss or not. These factors were the most prominent points that were raised by both the congress and other state governments against the GST Bill.

What is the 3 major demand of Congress, due to this it is not supporting GST Bill?

Congress had made their points clear when party president Rahul Gandhi spoke about the major demands they had on the bill. He claimed that there were 3 things that they needed to be abolished from the GST Bill. They are:

  • Upper cap on the GST rate: Congress wanted the central government to put a cap on the GST at 18%. However it wasn’t set as Finance Minister of India said putting a cap of 18% would be troublesome under the amendment as each time GST council has to keep on changing the amendment to change the rate.
  • Abolishment of the 1% additional tax: there was a provision of 1% additional tax imposed on the consumption of the goods and services. The party wanted the central to remove it completely to bring down the tax burden.
  • Independent dispute resolution: further the party demanded that the bill must be settled on the independent dispute resolution mechanism which was missing in the original bill proposed by the UPA government.

Government point of view towards GST

As far as the central government is concerned, they have stated that the tax will amalgamate all the other taxes like purchase tax, entertainment tax, VAT or sales tax, entry tax, excise duty, luxury tax and such and become one tax namely Goods and Services Tax.

On the other the state government has taken the GST on a positive way when some of the factors are revised in the bill. The abolishment of 1% additional tax, compensation of the revenue loss for the next years, dispute resolution system for PAN India and accommodated rate of the tax that will bring down the tax burden for common man.

Benefits or Positive changes once GST is implemented

Once GST will be passed the biggest positive change will be price decrease for several goods and services. Two wheelers and four wheelers price, movie tickets price and finally the domestic product and services price are expected to go down after the bill. For the small cars industry the tax rate will be 18-20% instead of 30.4% so the price will is expected to go down by 10%.

Negative changes once GST is implemented

As far as the negative changes are concerned, the price of few things are expected to increase, a few of them are

Sno Items
1 air tickets for economy
2 air tickets non-economy
3 hotel prices,
4 branded cloths,
5 cigarettes,
6 branded jewellery
7 mobile phone calls
8 online advertisment

Currently the tax levied on economy class tickets in flights is 6% and 9% for non-economy class will be taxed at 18-20% after GST. Also in the financial sector, the investments, insurance premium and such will be expensive than earlier time.

GST Bill passed date

On Wednesday fist week of August 2016 the GST bill has passed in Rajya Sabha. Though it was passed by the Lok Sabha in 2015, but it was hooked in Rajya Sabha for several points.

GST Bill Latest News

There are some areas where these changes have made after GST imposition. All these figures are average and subjected to be changed.

Sectors Changes after GST Impact
Banks Service tax: 18% to 15% Negative
Consumer staples 22% to 18% Positive
Consumer discretionary 15% to 18% Negative
Media 22% to 18% Positive
Telecom 15% to 18% Negative
Auto mobiles 27% to 18% Positive
Cement 27% to 18% Positive
Metals 18% to 18% No major impact
Real estate 15% to 16% Negligible impact
Pharmaceutical 15% to 18% Negative

GST Bill 2016-17 in Hindi

काफी दिनों की कोशिश के बाद सरकार ने GST Bill का अप्रूवल करवा ही लिया. यह एक महत्वपूर्ण बिल हैं जिसे मोदी सरकार ने पास करवाया जिसे केंद्र ने 2015 में ही हरी झंडी दे दी थी लेकिन राज्य सरकारों ने इसे रोक रखा था जिस पर 3 अगस्त 2016 को महत्वपूर्ण निर्णय लिया गया और इसे देश में लागू कर दिया गया .

क्या हैं जी.एस.टी. बिल ?

यह एक गुड्स एंड सर्विस टैक्स बिल हैं  जो कि एक प्रकार का अप्रत्यक्ष कर हैं जिसे विभिन्न सेवाओं के लिए लगाया जाता हैं. अब तक यह टैक्स कई अलग- अलग रूपों में वसूल किया जाता था लेकिन जी.एस.टी. बिल के आने के बाद, यह टैक्स केवल एक ही रूप में लिया जायेगा जिसे सरकार ने “वन नेशन वन टैक्स” के नाम से उल्लेखित किया हैं .अर्थात इस बिल के लागु होने के बाद व्यापारी को एक ही बार अप्रत्यक्ष कर का भुगतान करना होगा .

अब तक क्यूँ नहीं लागु हो सका जी.एस.टी. बिल ?

गत वर्ष ही सरकार ने यह जी.एस.टी. बिल केंद्र से पास करवा लिया था लेकिन कांग्रेस एवं  राज्य सरकारों को इस बिल में बहुत सी आपत्ति थी .उसी  के निराकरण में यह बिल अब तक पास नही हो सका था .

विशेष आपत्ति :

  • इस बिल के लागू होने पर शुरवाती दिनों में राज्यों को आय में काफी नुकसान का सामना करना पड़ेगा. अतः राज्य स्पष्टतौर पर जानना चाहते थे कि क्या उस समय इस नुकसान की भरपाई केंद्र करेगा ? या केंद्र इस स्थिती में क्या फैसला लेगा ?
  • राज्य सरकार के अनुसार उस बिल में पेट्रो टैक्स एवम एंट्री टैक्स के बारे में खुल कर कुछ भी नहीं कहा गया था .
  • कांग्रेस सरकार का कहना था कि जो 1 % एडिशनल टैक्स लगाया जा रहा हैं उसे भी हटाया जाये ताकि टैक्स भार कम किया जा सके .

ऐसी ही मुद्दों पर बहस के बाद जी.एस.टी. बिल संशोधित रूप में केंद्र एवम राज्य दोनों से पास कर दिया गया हैं .

लाभ एवम नुकसान :

जी.एस.टी. बिल के आने से लाभ एवम हानि दोनों की ही स्थिती उत्पन्न होगी . एक कर लगने से मिलने वाली कई सुविधायें सस्ती होंगी और कई महंगी . शुरुवाती दिनों में राज्यों को काफी नुकसान होगा लेकिन इसका सबसे बड़ा फायदा यह हैं कि होने वाली कालाबाजारी कई हद तक कम हो सकेगी जो कि सबसे बड़ी समस्या हैं .


  1. GST council aproves 15% cess for luxury car apart from 28% GST tax
  2. 4 Supplicament GST Bills passed.

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