Is One Nation, One Tax A Myth?

The four bills for the implementation of the goods and services tax were moved for discussion and passing in the Lok Sabha by Union Finance Minister Arun Jaitley. Jaitley underlined the necessity for the four bills, urging Parliament to uphold the law that was concluded after the GST Council—a representative body led by the Union finance minister and comprised of state finance ministers—approved it.

“We should treat it as if it were a government contract backed by the Constitution.” “We are free to offer our recommendations to the council, but we must also honor this federal compact,” he added in the Lok Sabha, “where states and the center have pooled their sovereignty and arrived at the different clauses of this legislation.”

According to him, the GST council is empowered by the constitution amendment legislation to offer suggestions on tax structure, cesses and surcharges, exemptions, and the small print of all laws.

The central GST bill, the integrated GST bill, the union territory GST bill, and the GST (compensation to states) bill are the four laws that are being considered simultaneously.

Many of the features of the law were criticized by Congress member of Parliament Veerappa Moily, who led the discussion for the opposition.

“The concept of one nation, one tax is a myth. These bills cannot be described as game-changers. It’s only a modest step ahead, but it’s a stride forward nonetheless “he stated

Moily claims that none of the bill’s provisions, including the taxation of special economic zones and the anti-profiteering system, are clear.

“Anti-profiteering legislation is harsh in character. It will have a negative impact on the industry “he stated

Moily went on to say that the government should aim to retain as many things as possible in the lower slabs to preserve consumer and industrial interests. Moily was also skeptical of the GST Council’s authority.

“The GST Council just serves as a coordinating body. It is a branch of the executive branch. It can’t take away the legislature’s authority “According to the bill’s present language, only the GST council and the central government are involved. “When it comes to judicial independence, the judiciary takes a position.” Isn’t it our duty to safeguard legislative independence? “He stated

He further claimed that the revised definition of agriculture will allow agriculturists to enter the tax net through a back door. The approval of these bills would pave the way for the GST to be implemented on July 1, 2017. By reducing tax barriers between states, the GST intends to turn the country into a unified market.