The Lok Sabha will take up the Constitution Amendment Bill on the Goods & Services Tax (GST) on Friday. “We expect the Bill to get passed by the Lok Sabha on Monday,” said a key Government official. The Bill will subsequently be taken up by the Rajya Sabha.

Since, the legislation intends to amend the Constitution it will have to be passed in each House of Parliament by a special majority — by a majority of the total membership of that House and by a majority of not less than two-thirds of the members of the House “present and voting”.

The government plans to introduce the new indirect tax regime from April 1, 2016.

The official said that the Empowered Committee of State Finance Ministers, in its meeting on April 22, evolved a broad consensus on the Bill. Though some States sought levying of additional 1 per cent tax beyond 2 years and more compensation, the official ruled out any major changes in the Bill.

There could be some changes in the language of specific provisions as demanded by States, which would be announced by the government in its reply after the discussion, he said.

The Bill, once approved by both the houses of Parliament, will need approval from at least half the State assemblies. Only then will it be presented to the President for assent.

Following this, the Centre will bring a separate Bill for introduction of new indirect tax reforms while States will have to present a separate legislation in their assemblies. This new tax system will subsume various indirect taxes such as Central Excise, Sales Tax/Value Added Tax etc.

The new tax regime aims to remove the cascading effect of multiple taxes and provide for a common national market for goods and services.

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