GST is solution to get over the defects :

GST is solution to get over the defects

GST is the solution to get over many defects in present structure of indirect taxes.

As per Statement of Obj ects and Reasons appended to the One Hundred and First Constitution Amendment  Bill, the obj ect is (a) to have common national market and avoid (b) cascading effect of taxes.

The idea of national GST was first mooted in India by Kelkar Committee in year 2004. Dr Vij ay Kelkar  recommended national GST.

The first announcement for introduction of GST was made in budget speech on 28-2-2006 by the then  Finance Minister, P Chidambaram. It was proposed to introduce nationwide GST w.e.f. 1-4-2010. This  target date could not be achieved, mainly due to political differences.

Steps were initiated towards introduction of GST.

CST rate reduction started. CST was reduced from 4% to 3% w.e.f. 1-4-2007. CST rate was reduced to  2% w.e.f. 1-6-2008. However, further phase out could not be done.

Task of designing GST was given to empowered committee of State Finance Ministers. The first discussion  paper was released by Empowered Committee on 10th November, 2009. The proposed GST law is broadly  on lines as indicated in the discussion paper.

The earlier provisions of Constitution did not provide for imposition of GST. Hence, Constitutional  Amendment was required before introduction of GST.

Constitution (One Hundred and First Amendment) Bill, 2014 was introduced in December, 2014 by Shri  Arun Jaitley, Finance Minister, Government of India.

Constitution (One Hundred and First Amendment) Bill, 2014 relating to GST was passed by Lok Sabha on 7-  5-2015. It was passed by Rajya Sabha on 3-8-2016 with certain amendments. These amendments were later  ratified by Lok Sabha.

Subsequently, the Constitution (One Hundred and First) Amendment Bill, 2016 was ratified by 17 States out  of 29 States, as required under Constitution. It then received assent of President on 8-9-2016.