New Reform To Change The Way Trading Is Done

Despite a handful of shortcomings, the introduction of GST is expected to bring in transparency and result in much fewer complications as compared to the current tax regime.

- Vipin Pubby

Stage is set for dismantling of over 600 barriers at inter-state boundaries across the country with the consensus among the Centre and the States on the long pending Goods and Services Tax (GST) which is scheduled to be implemented from July 1. The economic and trade reform, touted to be a game changer and one of the most important reforms of its kind since the independence, was held up for over a decade. Though it was the Congress led UPA which had first mooted a constitutional amendment to usher in economic reforms, the delay in the last couple of years is attributed to the stand taken by the party for amendments to the legislation proposed by the BJP led NDA government.

The Constitution (122nd Amendment) Bill, 2014, which sought to introduce a system for uniform taxation across the country, had been pending in the Upper House since 2014. Lok Sabha, where NDA and its allies command majority, had passed the legislation in May 2015 but it was stuck in Rajya Sabha where the NDA is in a minority. The historic reform has now crossed all hurdles and is set for implementation with the tax slabs for various goods and services finalised.