SKP Group
SKP GST Update
| Issue 20
 Required number of states ratify GST Bill 
Taking the Goods and Services Tax (GST) implementation process a step closer to completion, the Odisha State Assembly ratified the 122nd Constitutional Amendment Bill (the 122nd CAB) and fulfilled the 50% state ratification mark which was required to enact the amendment in the Constitution.

The 122nd CAB (which proposes to amend the Constitution to support GST) was cleared by both the Rajya Sabha and the Lok Sabha in August. Now, after having achieved the ratification of not less than 50% of the legislatures of states, it only awaits the assent of the President of India before coming into effect.

The process of ratification of the 122nd CAB in state assemblies started with the Bharatiya Janata Party-ruled Assam on 12 August 2016, followed by Bihar (a non-National Democratic Alliance (NDA) ruled state). Over the course of 22 days, 12 NDA-ruled states, 2 Congress-ruled states and 2 states led by other political parties along with Delhi (led by the Aam Aadmi Party) ratified the 122nd CAB, showcasing the acceptance of the Bill by all political parties in India.

The following states and union territories ratified the 122nd CAB in their state assemblies by 2 September 2016:
Assam Chhattisgarh Nagaland
Sikkim Bihar Gujarat
Maharashtra Mizoram Jharkhand
Madhya Pradesh Haryana Goa
Himachal Pradesh Delhi Telangana
Odisha Rajasthan
SKP's comments
Post the Rajya Sabha acceptance of the 122nd CAB on 3 August 2016, the Revenue Secretary, Hasmukh Adhia, categorically claimed that government will be able to receive the required number of ratifications in 30 days on 4 August 2016. The government achieved this well ahead of the due date. The government is now considering the possibility of an early winter parliamentary session to introduce the final GST Laws.

If the government continues to meet the time commitments with respect to the implementation of GST, it is likely that it will be well prepared to introduce GST in India by April 2017. Thus, organisations will now have to expedite their GST implementation process as they may only have 7 months before the launch of GST.
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