Assam becomes first state to ratify GST Bill
Q. Who became the first state to ratify the Constitution (122nd Amendment) GST Bill 2014?- Published on 16 Aug 16
The Assam Assembly on 12th August 2016 passed a resolution to become the first state to ratify the Constitution (122nd Amendment) GST Bill 2014.
- The bill was passed by the LS on 8th August 2016 and RS on 3rd August 2016.
- The GST will have two components keeping the federal structure of India in mind- the Central GST and the State GST.
- For goods and services that pass through several states or imports, the Centre will levy the Integrated GST.
- Alcohol for human consumption or liquor has been kept out of the ambit of GST.
- GST Bill empowers the centre to impose additional tax of up to 1 percent on interstate supply of goods for two years or more- tax will accrue to states from where the supply originates.
- GST will not apply to petroleum crude initially or high speed diesel, motor spirit (petrol), natural gas and aviation turbine fuel and GST council will decide when GST will be levied for these.
- Tobacco and tobacco products will be subject to GST and centre may impose excise duty on tobacco.
- Compensation may be provided to states for revenue losses stemming from implementation of GST for 5 years based on the recommendations of the GST Council.