India: Outlook for GST regime

India: Outlook for GST regime

The goods and services tax (GST) bill was tabled in the Rajya Sabha (upper house) on 11 August 2015. However, discussions around GST bill met with strong resistance from other political parties on procedural grounds. As a result, the Rajya Sabha adjourned for both the days, 11 and 12 August 2015, without any discussions and voting. Finally, the monsoon session ended on 13 August 2015 sine die.

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This development is viewed as a disappointment for the government because a GST regime was viewed business reform, and not just tax reform, in India. Despite the setback, the general view is that action on the proposed GST regime would return soon, so that the target implementation date in 2016 would not be deferred by more than a few months.

Against this backdrop, it is the belief of tax professionals in India that there could be two possible scenarios for passing the GST bill.

 

Read an August 2015 report [PDF 405 KB] prepared by the KPMG member firm in India: GST – What Next?

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