History of GST in India

After a wait of long 14 years, GST has been introduced in our country with effect from 01.07.17. GST, the biggest tax reform of the country, has subsumed various taxes levied by the Central and State Governments. It is expected that GST would re-shape our fast-growing economy and support Government’s endeavour to make India an easier place to do business.

Let us have a look on the chronological events that have led the launch of GST in India.

Sr No. Month & Year Event
1 2003-04 Kelkar Tax Force on Indirect Taxes suggested a comprehensive Goods & Services Tax (GST) on VAT Principle.
2 2006-07 A proposal to introduce a National Level GST by April1, 2010 was first mooted in Budget Speech.
3 September, 2009 A Joint Working Group consisting of Central/State Officers was constituted.
4 November, 2009 Empowered Committee (EC) consisting of State Finance Ministers released first paper on GST in India.
5 March, 2011 115th Constitutional Amendment Bill introduced in Lok Sabha to amend the constitution to pave the way for GST.
6 November, 2012 A committee on GST Design comprising of officials of Central/State Governments & Empowered Committee was constituted.
7 January, 2013 The Committee on GST design submitted its report. Based on this report, EC suggested certain amendments to the Constitutional Amendment Bill. A decision to constitute three committees was taken by EC viz.

  1. Committee on Place of Supply Rules & Revenue Neutral Rates
  2. Committee on Dual Control, Threshold & Exemptions;
  3. Committee on IGST & GST Imports.
8 August, 2013 The Parliamentary Standing Committee (PSC) submitted its report to the Lok Sabha. The draft amendment bill was revised on the basis of the recommendations of EC & PSC.
9 September, 2013 The Final Draft Constitutional Amendment Bill was sent to EC for consideration.
10 November, 2013 The EC once again made certain recommendations.
11 March, 2014 The revised draft of the constitutional bill was sent to EC for consideration.
12 May, 2014 The 115th Constitutional Amendment Bill, 2011 was lapsed with the dissolution of the 15th Lok Sabha.
13 June, 2014 The draft Constitution Amendment Bill was sent to EC after approval of the New Government.
14 December, 2014 The cabinet approved the proposal to introduce a bill in the Parliament for amending the Constitution of India to facilitate the introduction of GST In India.
15 May, 2015 The Constitutional Amendment Bill was passed by the Lok Sabha on 06.05.15
16 July, 2015 The Bill was referred to the Select Committee of Rajya Sabha which submitted its report on 22.07.15
17 June, 2016 Government released Model GST Law (Draft) prepared by EC.
18 August, 2016 The Rajya Sabha passed the Constitutional Amendment Bill (122nd) unanimously on 03.08.16
19 August, 2016 The Lok Sabha passed the bill on 08.08.16 unanimously.
20 August, 2016 The bill was circulated to State Governments seeking their ratification. (Ratification of the Constitutional Amendment Bill was required by the Legislative Assemblies by at least 50% of the States.
21 September, 2016 President of India gave assent to the Constitutional Amendment Bill on 08.09.16 after ratification of the bill by 50% of the Legislative Assemblies.
22 July, 2017 The GST was finally launched in India except State of Jammu & Kashmir with effect from 01.07.17
The State of Jammu & Kashmir passed the resolution adopting the provisions of the Constitution (101st Amendment) Act, 2016 on 08.07.17.
The President of India promulgated the ordinance dated 08.07.17 extending the provisions of CGST to the State of Jammu & Kashmir.
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