Rajya Sabha clears Manipur GST Bill, paving way for GST 2.0 reforms

New Delhi: A day after the Lok Sabha passed the Manipur Goods and Services Tax (Second Amendment) Bill, 2025, the Rajya Sabha on Tuesday returned the Bill to the Lower House, clearing the path for the northeastern state to implement GST 2.0 reforms.

The legislation replaces an Ordinance issued on October 7, which had operationalised the revised GST structure in Manipur, currently under President’s Rule.

During the Upper House debate, Finance Minister Nirmala Sitharaman sharply criticised the Opposition, accusing them of “shedding crocodile tears on Manipur” while refusing to participate in discussions on a bill designed to extend GST benefits to the state. She pointed out that Opposition members had also skipped the earlier debate on Manipur’s budget.

“Even today, when GST benefits need to reach the state government, they are absent. This is shameful… All the grievances they raise on Manipur are just drama,” Sitharaman said. Her remarks came shortly after Opposition MPs staged a walkout when their demand for a discussion on the Special Intensive Revision (SIR) of electoral rolls was rejected by the Chair.

The Bill, tabled by Minister of State for Finance Pankaj Chaudhary, implements decisions taken at the 56th meeting of the GST Council. Chaired by Sitharaman and comprising representatives from all states, the Council approved rationalisation of GST rates across roughly 375 items merging the previous 5%, 12%, 18%, and 28% slabs into 2%, 5%, and 18%. The GST Council proposed a 40% rate for ultra-luxury items. The revised rates came into effect on September 22.

Since Manipur does not have an elected government, state GST laws had to be amended via a Centre-issued Ordinance in October. Following a brief debate and Sitharaman’s statement, the Rajya Sabha passed the Bill by voice vote, formally sending it back to the Lok Sabha for final approval.