On May 16th, the state Goods and Services Taxes (GST) bill was passed by Andhra Pradesh Legislature. On April 6th, the Parliament has passed four distinct laws to rollout uniform GST throughout the country from July 1st onwards.
In order to pass the bill, a special meeting of the state legislature was called. Yanamala Ramakrishnudu, the state Finance Minister, while introducing the bill said that it is sure to enhance the tax base of the state while also ensuring proper compliance, thanks to the impressive IT infrastructure in the state.
He added that the introduction of this bill will initially result in a loss of revenue of up to INR 2600 crores. However, the Central Government would offer compensations using the special funds that have been created using the State Goods and Services Tax (Compensation to States) Act, 2017.
According to CM, Chandrababu Naidu this innovative change will lead to a growth of 2% in the Gross Domestic Product of the country.
While the bill was being passed in the Assembly, the members of the opposition started raising slogans and surrounded the Speaker with placards in their hands demanding that a price stabilization fund be created for the farmers of the state. The GST bill was introduced by the Finance Minister in the Assembly and was passed quickly. Later it was also presented to the Legislative Council who too passed it.