The Lok Sabha on Monday gave its nod to a key piece of legislation concerning taxation in the northeastern state of Manipur. The lower house passed the Manipur Goods and Services Tax (Second Amendment) Bill, 2025, effectively replacing an ordinance that had been in place.
Replacing the Ordinance: A Legislative Formality
This parliamentary action was a necessary step to convert an executive order into formal law. The Bill supersedes the Manipur Goods and Services Tax (Second Amendment) Ordinance, which was originally promulgated on October 7, 2025. The passage of the bill provides a permanent legislative framework for the changes initially introduced through the ordinance.
Aligning with Nationwide GST Rationalization
The primary driver behind this amendment is the landmark decision taken by the 56th GST Council. The Council, which includes representatives from the Centre and all states, had undertaken a major overhaul of the tax structure earlier this year.
The council's decision involved a significant rationalization of GST rates on approximately 375 different items. This was achieved by merging the previous four primary tax slabs of 5%, 12%, 18%, and 28% into two main slabs: 5% and 18%. Additionally, a new top tier of 40% GST has been proposed for ultra-luxury items.
These sweeping changes to the national GST regime were officially implemented on September 22. Consequently, individual state GST laws, including that of Manipur, required amendments to reflect and enforce these new rates on goods and services within their jurisdictions.
Context of President's Rule in Manipur
The legislative process for Manipur is currently occurring under unique constitutional circumstances. It is important to note that Manipur is presently under President's rule. This means the state's assembly is suspended, and its affairs are directly administered by the central government. The passage of this bill by the national parliament was therefore the direct route to enacting these necessary tax changes in the state.
The successful passage of the Manipur GST (Second Amendment) Bill, 2025, ensures seamless integration of the state's tax apparatus with the newly simplified national GST structure, promoting uniformity and compliance.
