The Winter Session of Parliament began with a pivotal legislative move for the North Eastern region. On Monday, the Lok Sabha passed the Manipur Goods and Services Tax (Second Amendment) Bill, 2025. This crucial action ensures that Manipur's tax framework is fully compliant with the latest national decisions, replacing a temporary ordinance with a permanent law.
1. From Ordinance to Act: Formalizing the GST Changes
The primary purpose of the newly passed Bill is to replace the Manipur Goods and Services Tax (Second Amendment) Ordinance, 2025, which had been promulgated earlier on October 7, 2025.
In India's legislative process, an Ordinance is a temporary law issued when Parliament is not in session. For its provisions to remain effective, it must be approved by Parliament and formalized into an Act within a stipulated time frame. The speedy approval of this Bill by the Lok Sabha ensures legal continuity and stability for the tax changes already in place.
2. The Mandate: Aligning with the 56th GST Council Decisions
The driving force behind this amendment is the need for state tax laws to incorporate the sweeping reforms recommended by the 56th GST Council. This Council, which comprises the Union Finance Minister and state representatives, had mandated a significant rationalization of Goods and Services Tax (GST) rates across the country.
Key Highlights of the GST Rate Rationalization:
- Slab Consolidation: The Council approved the merging of the previous four major tax slabs (5%, 12%, 18%, and 28%) into two main categories: 5% and 18%. This move aims to simplify compliance and reduce classification disputes.
- New Ultra-Luxury Rate: A new, higher rate of 40% was proposed for certain ultra-luxury goods to maintain tax incidence on premium consumption.
These new rates were implemented nationally starting September 22. Consequently, state-level GST (SGST) laws—including the one in Manipur—required immediate amendment to legalize these tax rate changes on various goods and services within the state.
3. Legislative Context: Manipur Under President's Rule
An important factor in this legislative process is that Manipur is currently under President's Rule.
When a state is under President’s Rule, the legislative powers of the State Legislature are assumed by the Union Parliament. Therefore, the Parliament is responsible for passing state-specific laws. The Bill was efficiently moved for consideration and passing by Union Finance Minister Nirmala Sitharaman, reflecting the central government's efforts to maintain legislative continuity even during this period.
The passage of the Manipur Goods and Services Tax (Second Amendment) Bill, 2025, is a critical administrative step. By replacing the Ordinance, the new Act guarantees that Manipur's tax structure is fully aligned and compliant with the simplified tax slabs and rate adjustments mandated by the 56th GST Council. This action provides much-needed clarity, uniformity, and stability for businesses and consumers operating within the state.