presidential assent on GST

The GST bill has received the Presidential assent on Thursday 8th Sept, 2016 making it a law henceforth.

Earlier in Aug 2016, Parliament had passed the Constitutional Amendment bill enabling the GST. After which it was presented to the states for ratification. The bill had to be ratified by more than half of the states to become a law, as it is a Constitutional amendment.

So far 18 states have ratified the GST Bill. Assam was the first state to do so when the Assam Legislative Assembly unanimously approved the Bill. The other states to ratify the bill are Bihar, Jharkhand, Himachal Pradesh, Chhattisgarh, Gujarat, Madhya Pradesh, Delhi, Nagaland, Maharashtra, Haryana, Telangana, Sikkim, Mizoram, Goa, Odisha, Puducherry and Rajasthan.

Following the Presidential assent, the Government will now have to setup GST council which will decide on the tax rates and other related issues. The GST Council will comprise of state Finance Ministers and headed by the Union Finance Minister Arun Jaitely.

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