The Gujarat State Assembly on Tuesday ratified the Goods and Services Tax (GST) Constitution Amendment Bill in the absence of the Opposition party Congress.
It has become the sixth State to pass the Bill, which requires ratification from at least 15 state legislatures before the President notifies the GST Council.
The Gujarat Government had convened a special two-day monsoon session of the State Assembly on Monday and Tuesday to ratify the GST Bill.
Deputy Chief Minister Nitin Patel stated that with the amended GST Bill, Gujarat will have the authority to collect taxes on transactions other than purchase or sale within the State. This will also authorise the State to collect taxes on various kinds of supplies.
“Earlier, Centre had the sovereign right to levy and collect tax on services. With this amendment, this right will be passed on to the States. The share of services in the country’s GDP is 50 per cent and the same is ever increasing. This will provide the States to collect taxes from this vast sector,’’ Patel said while introducing the Bill in the House.
However, earlier in the day, Speaker Ramanbhai Vora had suspended 44 MLAs of the Opposition Congress before the introduction of the GST Bill in the House for causing ruckus over Dalit atrocities issue in the State.
In the 182-member State Assembly, the Congress has 56 members.
The GST Constitution (122nd Amendment) Bill was passed by the Lok Sabha earlier this month.