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India last attempt to save GST reform

  • Aug 31, 2015 | Richard Asquith

India last attempt to save GST reform

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.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.