The bill for a goods and services tax (GST), which the government wants to implement by April 1, 2016, was sent last month to a select committee of the Rajya Sabha, which will table its report in the upper house on the last day of the first week of next parliament session.
The GST is seen as the key to facilitating industrial growth and improving the country's business climate. By subsuming most indirect taxes levied by the central and state governments such as excise duty, service tax, VAT and sales tax, the new regime proposes to facilitate a common market across the country, leading to economies of scale and reducing inflation through an efficient supply chain. The passage of the bill to become a law is a lengthy process.
Being a constitution amendment bill, which was passed by the Lok Sabha, it needs to be passed by the Rajya Sabha with a two-thirds majority and then ratified by at least 15 state legislatures before being sent for the president's assent. Meanwhile, at a "diaspora interaction" organised by CII near here, Jaitley said the Indian diaspora in Silicon Valley are the best brand ambassadors of India's transformation on the world stage.