Odisha gives GST magic number for President’s nod

Odisha became the 16th state to have passed the landmark tax reform. In a special sitting of the state assembly, Chief Minister Naveen Patnaik moved a resolution on ratification of the GST bill, which was passed after hours long discussion. The Chief Minister thanked the members of the assembly for supporting the resolution. He said the GST would bring about comprehensive reform in the indirect tax regime across the country. 

The Chief Minister said, “A number of benefits are expected to accrue not only to the central and state governments but also the consumers, business, and industries from the changeover to the Goods and Services Tax system.” Patnaik, however, said the state government would separately request the Centre to consider its concern for the imposition of green tax on polluting goods in addition to the GST and take appropriate steps for Central Sales Tax compensation to the states up to 2016-17. 

“We have to establish the legal framework through enactment of the GST laws by the Centre and the states, put in place a robust information technology-based platform for administering the new tax, manage the change through training the tax administrators and officials, familiarise the members of trade and industry with the processes of the new taxation system and sensitise the public about its effect,” Patnaik said. The Constitution (122nd Amendment) Bill, 2014, on the GST was passed by parliament in August and needs to be ratified by at least 15 state legislatures before the President can notify the GST Council which will decide the new tax rate and other issues. The central government has set a target to roll-out the GST Act on April 1, 2017.