(Image source from: Cabinet approved draft bill for GST})

Union cabinet yesterday evening cleared decks for Constitution amendment bill for Goods and Services Tax (GST).

GST introduction will be a major taxation reform initiative. GST will avoid the overlapping of State taxes and duties. Investors and Corporate houses advocating for GST as it can simplify taxation policies and process.

Some states were reluctant to this reformation bill which aims at cutting the state's income source. But Finance Ministers tried for consensus for bringing this Harmonized Goods and Service Tax amendment Bill.

During this session of Parliament only Finance Minister may introduce this amendment bill but it may come for the discussion and voting in next sessions, that is during budget session.

To become an act GST bill or this constitution amendment bill must be passed by at least half of Indian 29 states.

If this bill get passed in time in the parliament and 50% state legislatures. It will come into effect from April 1, 2016.

This can attract business entities and NRI entrepreneurs.

AW: Kannamsai