A report of HSBC has said that the Goods and Services Tax (GST) Bill is likely to be passed this year, also the new indirect taxes regime will be rolled out from April next year.
As per the global financial services firm, the increase in number of smaller parties might also push through other aspects of legislation such as Bankruptcy Code and the RBI Amendment Bill.
“We believe the BJP’s chances of passing the GST Bill are improving and think it will be passed in 2016, ready to be rolled out from April 2017, especially as the government has made changes to make it more amenable to other parties,” HSBC released a statement as per the research note today.
The long awaited GST plays an important role in legislation, as it aids to simplify and standardise the tax structure of our country. The Bill will need an amendment to the constitution and it will require around two-third of the majority in each house of the Parliament.
As per HSBC, the equity of power in Rajya Sabha or the Upper House, might see a change in this summer and this might generate an opportunity for BJP to pass the major aspects of legislation.
Tamil Nadu, Kerala, Assam, West Bengal and Puducherry are holding elections in April and May. The results are due on May 19. One-third of the members in the Upper House step down in every two years. Rest of the year – 2016, 56 members or 245 might be up for another election.
“This is important because the BJP lacks a majority in the Rajya Sabha. A change in the balance of power could help the BJP push through long-delayed pieces of legislation, such as GST bill,” HSBC released a statement.