President Pranab Mukherjee on Thursday gave his assent to the Constitution (122nd) Amendment Bill on the Goods and Services Tax. The new law is slated to come into effect on April 1 next year.
The President’s assent came after 16 of the 29 states ratified the Bill in the past few weeks. A Constitution amendment bill needs to be ratified by the legislative Assemblies of at least 50 per cent of the total number of states.
The Bill was passed by Lok Sabha earlier in this month, with 443 members voting in favour of the legislation. Now that it has got Presidential assent, it will be sent to the GST council, which will decide the new tax rates.
The states and the Centre will draft the Central GST, State GST and Integrated GST laws, which are to be passed in the Winter Session of Parliament.
Meanwhile, Arunachal Pradesh Assembly on Thursday ratified the GST Bill.