Will GST rule the market swings on August 3

GST which is in the final stage to get cleared, will be placed before the upper house (Rajya Sabha) Wednesday i.e. August 3. Government has finally reached a consensus with all the major parties to pass the bill. The major opposition Congress too has agreed to back the bill, it had made 3 demands out of which 2 have been unanimously accepted by the government, the same set which was once opposing the bill when sitting on the other side in the lower house (Lok Sabha).

Congress demands on the GST bill a cap to be included on the GST rate at 18 per cent, deletion of the provision which allows imposition of 1 per cent tax by additional levy, and an independent dispute resolution mechanism.
The government has circulated official amendments to the GST bill to drop 1 percent additional tax and include a definite provision in the statute for compensating states for revenue loss for the period of 5 years.

The bill will lower the burden of indirect tax on the goods, which accounts to nearly 25 to 30 per cent. To get all indirect taxes levied by the centre and the state under one roof will make the Indian Tax system strong as it will avoid cascading and double taxation issue and give the Indian companies an upper hand and make them competitive in the International markets.

GST will be a big booster to the manufacturing sector. However, the implication of the bill will take atleast a minimum of one and half year to fall in place after getting a green signal from Rajya Sabha.