Recently, The Union Cabinet approved on 17th December,2014 the proposal for introduction of a Bill in the Parliament for amending the Constitution of India to facilitate the introduction of Goods and Services Tax (GST) in the country. The Government intends to introduce GST from 01 April, 2016.The proposed bill will give powers both to the Parliament and State legislatures to make laws for levying GST on the supply of goods and services in the same transaction.

There will be three legislations in all i.e. Central GST, State GST and an Integrated GST which will subsume the following taxes as under:-

Central GST	State GST
Central Excise Duty	Value added tax
Additional Excise Duty	Entertainment tax
Service tax	Luxury tax
Additional Custom Duties	Lottery tax
Special Additional Duty of Customs	Central Sales tax
Central Cesses and surcharges	Entry tax or Octrio

• New Article 246A is proposed which will confer simultaneous power to Union and State legislatures to legislate on GST
• New Article 279A is proposed for the creation of a Goods & Services Tax Council which will be a joint forum of the Centre and the States.
• Proposed the establishment of GST Council in which State Governments will have two-third vote share.
• GST rates will be uniform across the country.
• GST will be a destination-based tax.
• Loss of revenue to the State will be compensated by the Centre arising on account of implementation of the GST for a period up to five years. The compensation will be on a tapering basis, i.e.

• All goods and services, except alcoholic liquor for human consumption, will be brought under the purview of GST.
• The Central Government has proposed that petroleum products not to be taxed under GST till notified at a future date on the recommendation of GST Council.
• Both Centre and States will simultaneously levy GST across the value chain. Centre would levy and collect Central Goods and Services Tax (CGST), and States would levy and collect the State Goods and Services Tax (SGST) on all transactions within a State.
• The Centre would levy and collect the Integrated Goods and Services Tax (IGST) on all inter-State supply of goods and services. There will be seamless flow of input tax credit from one State to another.