A special session of the Telangana Legislature (Council and Assembly) unanimously ratified the constitutional amendment bill for the Goods and Services Tax (GST) on Tuesday.
With this, Telangana became the 10th State in the nation to pass the bill.
The Centre needs the support of at least 15 States to implement the amended new GST policy.
Chief Minister K Chandrashekar Rao introduced the GST bill ratification resolution and explained the new bill's advantages.
"The new GST attempts to implement a 'one-nation, one-tax' policy across the nation. It will bring in significant financial reforms across the nation and will provide sufficient funds to the coffers of all the States. One of the major reforms is that 50% of the revenue collected from the service tax will now be shared with the States. The bill will also help the States by devolving funds for the first five years to overcome the financial deficit that will follow. Even though the Centre will have the final say on Value Added Tax (VAT), this will not have any adverse impact on the revenue-generating service sector," KCR said.
After the bill got approved in all States' legislatures, the Centre would set up a GST Council to formulate a new tax regime across the nation, he added.
The House unanimously approved the resolution. The Assembly and the Council were then adjourned sine die.