Manipur GST (Second Amendment) Bill passed in Lok Sabha amid uproar on day one of Winter Session

The opening day of the winter session of Parliament witnessed uproar, sharp exchanges, and repeated adjournments, but the Manipur Goods and Services Tax (Second Amendment) Bill, 2025, was successfully passed in the Lok Sabha on Monday, December 1.

The bill, introduced by Union Finance Minister Nirmala Sitharaman, seeks to replace the Manipur GST (Second Amendment) Ordinance issued on October 7 during the ongoing President’s Rule in the state. The session was presided over by Krishna Prasad Tenneti of the Telugu Desam Party.

The amendment aims to align Manipur’s Goods and Services Tax framework with the latest national GST reforms brought in through Sections 121–134 of the Finance Act, 2025. Highlighting the urgency of the legislation, Sitharaman said the state’s tax system required immediate parity with the Central GST regime to avoid compliance gaps and revenue loss.

Key reforms under the Bill include rationalisation of tax slabs—with the current 5%, 12%, 18%, and 28% slabs merged into two primary tiers of 5% and 18%. A 40% levy on premium luxury commodities is also proposed in line with recommendations from the 56th GST Council meeting. The new structure is expected to simplify tax compliance, curb evasion, enhance ease of doing business, and support the state’s revenue generation.

“Manipur has been under President’s Rule since February 13, 2025. This amendment ensures seamless integration with the national GST framework, benefiting both traders and consumers,” Sitharaman said during the three-hour debate.

The Finance Minister also underlined that the reforms would strengthen Manipur’s fiscal autonomy and promote economic recovery in a region dealing with prolonged ethnic unrest and insurgent challenges. Supporting the move, BJP MP Shashank Mani from Uttar Pradesh’s Deoria constituency called for swift passage of the legislation, citing its significance for the region’s stability and financial health.