Mizoram Assembly today ratified the Goods and Services Tax (GST) Constitutional Amendment bill by adopting an official resolution, becoming 13th state to have approved the legislation. The state legislature unanimously adopted the official resolution moved by Finance and Taxation Minister Lalsawta after deliberations on the first day of the Assembly.
Participants of the discussion, irrespective of party affiliations, expressed hope that the GST Act would not only streamline the tax regime in the country, but also benefit states like Mizoram.
Earlier, the Telangana Legislature on Tuesday unanimously ratified the Goods and Services Tax Constitutional Amendment Bill. Both Houses of the Legislature met for a special one-day session to approve the Constitution (122nd Amendment) (Goods and Services Tax) Bill, passed by Parliament earlier in August.
Although the bill was passed unanimously by both houses of the Parliament,16 states have to ratify the Constitution amendment after which it has to receive a notification form the President. It is only after this that the GST council would be formed which decides the rates. The ratification of the bill by Mizoram and Telangana means that thus far, 13 states have approved the legislation. These states include Assam, Bihar, Jharkhand, Himachal Pradesh, Chhattisgarh, Gujarat, Madhya Pradesh, Delhi, Nagaland, Mahrashtra and Haryana.
GST aims to do away with multiple-tax regime on goods and services and bring them under one rate. It will alter the present system of production-based taxation to a consumption-based one. While manufactured consumer goods will become cheaper as the incidence of excise duty and VAT will come down from 25-26 per cent at present, the cost of services would by and large go up from the present 15 per cent levels.