With GST highly unlikely to see the light of the day on
April 1, 2016, the Make in India dream appears to be under threat
at this stage.
Roadblock to the introduction of GST
The Constitutional Amendment (122nd) Bill, 2014 for
amendment of the Constitution of India to introduce GST was
introduced in the Lok Sabha on December 19, 2014. As the current
Government had ample majority in the Lok Sabha, the bill was passed
by the lower house on May 6, 2015. However, due to lack of majority
in the Rajya Sabha, the GST has hit a roadblock at the Upper House
of the Parliament.
GST still has a long way to go before it is finally enacted.
After the Bill is passed in both the Houses of Parliament by two
thirds majority, the Bill will be sent to the State Legislatures
for ratification. The ratification by at least 50 per cent of the
State Legislature will be required before the proposed Constitution
amendments are brought into effect.
