India last attempt to save GST reform
- Aug 31, 2015 | Richard Asquith
Discussions to save the new Goods & Services Tax (GST) implementation Bill (the Constitutional Amendment Bill) are underway in India. This includes an unscheduled Parliamentary session as the government seeks to pass the Bill in time for an April 2016 implementation.
The new GST will replace the antiquated VAT, CENVAT and other indirect taxes, and is forecast to add over 1% to India’s GDP based on eliminating double taxation and a large administrative burden from companies.
However, the Bill has been slowed down on differences between the ruling Union party and opposition Congress. The latter fears that too many compromises on rates and exemptions have been made to make the new tax workable.
India GST implementation October 2016 or later
If this last attempt to save the Bill fails in the forthcoming weeks, then the Bill will be pushed to the winter session of Parliament in November. This would mean the earliest practical implementation date is October 2016, but reform could slip to 2017.