The Union Cabinet has approved the Constitution Amendment Bill on Goods and Services Tax (GST), clearing the way for its introduction in the ongoing session of the Parliament to bring about long-pending indirect tax reforms.
The bill is likely to be tabled in the ongoing winter session of the Parliament that concludes on December 23. The government aims to roll out the GST from April 1, 2016.
Last week, Union Finance Minister Arun Jaitley had held a meeting with his state counterparts to discuss the challenges in rolling out the GST.
The GST will include indirect taxes like excise duty and service tax at the central level and value added tax (VAT) and local taxes on the states front.
Earlier, the GST Constitutional Amendment Bill, which had been introduced in the Lok Sabha in 2011, had lapsed. The incumbent National Democratic Alliance (NDA) Government will now be required to come up with a fresh bill.
According to reports, state governments have demanded that petroleum, alcohol and tobacco should be kept out of the purview of the GST.
—ANI