Telangana Legislature ratifies GST Bill

Hyderabad, Aug 30 (PTI) The Telangana Legislature todayunanimously ratified the Goods and Services Tax ConstitutionalAmendment Bill, becoming 12th state to have approved thelegislation that will pave the way for roll-out of a single andunified tax system in the country. Both Houses of the Legislature met for a special one-daysession to approve the Constitution (122nd Amendment) (Goodsand Services Tax) Bill, passed by Parliament earlier thismonth. Chief Minister K Chandrasekhar Rao introduced theresolution seeking the ratification in the Assembly whileDeputy Chief Minister Kadiyam Srihari moved it in the Council. "I sincerely thank all the members for unanimously passingthe resolution to ratify the Amendment Bill," KCR said afterthe ratification. He said Telangana Finance Minister Etela Rajendar hadconveyed the state government’s feelings about the Bill in themeetings convened by Union Finance Minister Arun Jaitley. Earlier before moving the resolution, KCR said the Billmay help Telangana as the GST Bill empowers states to levyservice tax which is currently under the purview of Centre. According to him, Telangana would largely benefit (afterthe implementation of GST) as significant share of its incomecomes from service sector. "As per the provisions of the GST Bill, the Centre wouldfill the gap in revenue, if any, for five years. So thereshould not be any apprehensions of state losing revenues," theCM said. Congress member Chinna Reddy said it was the UPA thatintroduced GST Bill in Parliament and cautioned government onburdening people with tax. GST aims to do away with multiple-tax regime on goods andservices and bring them under one rate. It will alter thepresent system of production-based taxation to aconsumption-based one. The government has set a deadline ofApril, 2017 for its roll-out. While manufactured consumer goods will become cheaper asthe incidence of excise duty and VAT will come down from 25-26per cent at present, the cost of services would by and large,go up from the present 15 per cent levy. The Constitution Amendment Bill passed by Parliament needsto be ratified by more than half of the total states before itcould be sent for Presidential assent. So far, 12 states haveratified the Bill. PTI GDK DKDIP

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