President Pranab Mukherjee on Thursday signed the Goods and Services Tax (GST) Bill, paving way for it to become a law. The 122nd Constitutional Amendment (GST) Bill was passed by the Lok Sabha and the Rajya Sabha in August this year.
The Bill received the President’s assent pursuant to its ratification by 16 of the country’s 29 States over the past few weeks. Enabling Acts would now have to be passed at the Centre and State level.
GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.
You may also read: Frequently Asked Questions (FAQs) on Goods and Services Tax (GST)
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