Major sequential events that led to the introduction of GST

New Delhi : In a few hours from now, India's biggest tax reform--Goods and Services Tax (GST) will be launched in Parliament's Central Hall on Friday night. The hour-long starry event to mark the grand launch of the GST will be graced by President Pranab Mukherjee, Prime Minister Narendra Modi and a host of dignitaries from various walks of life.

List of major sequential events that have led to the launch of the GST:

1. The GST was first discussed in the report of the Kelkar Task Force on indirect taxes. In 2003, the Kelkar Task Force on indirect tax had suggested a comprehensive GST based on VAT principle.
2. A proposal to introduce a National level Goods and Services Tax (GST) by April 1, 2010, was first mooted in the Budget Speech for the financial year 2006-07.
3. Since the proposal involved reform/ restructuring of not only indirect taxes levied by the Centre but also the States, the responsibility of preparing a Design and Road Map for the implementation of GST was assigned to the Empowered Committee of State Finance Ministers (EC).
4. Based on inputs from Govt of India and States, the EC released its First Discussion Paper on Goods and Services Tax in India in November, 2009.
5. In order to take the GST related work further, a Joint Working Group consisting of officers from Central as well as State Government was constituted in September, 2009.
6. In order to amend the Constitution to enable introduction of GST, the Constitution (115th Amendment) Bill was introduced in the Lok Sabha in March 2011. As per the prescribed procedure, the Bill was referred to the Standing Committee on Finance of the Parliament for examination and report.
7. Meanwhile, in pursuance of the decision taken in a meeting between the Union Finance Minister and the Empowered Committee of State Finance Ministers on November 8, 2012, a 'Committee on GST Design', consisting of the officials of the Government of India, State Governments and the Empowered Committee was constituted.
8. This Committee did a detailed discussion on GST design including the Constitution (115th) Amendment Bill and submitted its report in January, 2013. Based on this Report, the EC recommended certain changes in the Constitution Amendment Bill in their meeting at Bhubaneswar in January 2013.
9. The Empowered Committee in the Bhubaneswar meeting also decided to constitute three committees of officers to discuss and report on various aspects of GST as follows:- (a) Committee on Place of Supply Rules and Revenue Neutral Rates;(b) Committee on dual control, threshold and exemptions;(c) Committee on IGST and GST on imports.

• The Parliamentary Standing Committee submitted its Report in August, 2013 to the Lok Sabha. The recommendations of the Empowered Committee and the recommendations of the Parliamentary Standing Committee were examined in the Ministry in consultation with the Legislative Department.
• The final draft Constitutional Amendment Bill incorporating the above stated changes were sent to the Empowered Committee for consideration in September 2013.
• The EC once again made certain recommendations on the Bill after its meeting in Shillong in November 2013. Certain recommendations of the Empowered Committee were incorporated in the draft Constitution (115th Amendment) Bill. The revised draft was sent for consideration of the Empowered Committee in March, 2014.
• Finally, the GST Amendment Bill got Parliament's nod in August, 2016. The GST roll out was now only a matter of time.
• The GST Council was formed. Approval from requisite number of states was secured. In January, 2017, Arun Jaitley announced that GST would be rolled out on July 1.