Parliament Winter Session 2025: Day 1 Sees Introduction of Three Bills in the Lok Sabha, with the Manipur Goods and Services Tax (Second Amendment) Bill, 2025 Passed to Improve the State’s GST Framework

Key Points:

The first day of the Winter Session of the Parliament saw three bills being introduced amid fiery opposition’s sloganeering of holding a pressing debate on the matter of SIR of electoral votes revision. 

The three bills that were tabled on day 1 are: 

1. The Manipur Goods and Services Tax (Second Amendment) Bill, 2025

2. The Central Excise (Amendment) Bill, 2025

3. The Health Security se National Security Cess Bill, 2025

Union Finance Minister Nirmala Sitharaman introduced these bills with the Central Excise (Amendment) Bill and The Health Security se National Security Cess Bill during the noon session, after which the disruptions by the opposition caused the Speaker to adjourn the Parliament. Amid the three bills that were introduced, the Lok Sabha passed the Manipur GST (Second Amendment) Bill, 2025 which replaced the Ordinance that was passed previously implementing reforms in the Goods and Services Tax.

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The Central Excise (Amendment) Bill, 2025 aims to raise taxes on “tobacco” and other sin products. The higher cost will ensure that the government will get proper compensation after the GST cess phases out next year.

The GST compensation cess was launched when GST was rolled out in 2017  to provide compensation for the states that lost money due to problems in the implementation of GST for a period of five years. However, during the COVID pandemic period, the government fell short of the money from these proceeds alone, and had to borrow money to compensate the states. Now, when the government will fully pay back the interest on the loans, it will discontinue the compensation cess and the two amendment bills will further ensure that an appropriate amount of tax on these sin goods are being collected.

The Health Security se National Security Cess Bill, 2025 aims to raise taxation on “pan masala” and other related products (sin goods), and on the machines used for their manufacturing. The revenue generated from the taxation will fund public health and national security initiatives. According to the “Statement of objects and reasons” of the Bill, the levy being collected from the cess is linked to the production capacity of the operating of these machines, rather than the actual amount of products being produced from the operation of these machines.

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The Manipur Goods and Services Tax (Second Amendment) Bill, 2025 was passed post lunch during the afternoon session which replaces an ordinance that was passed earlier for the state. This bill seeks to amend the legislative measures to implement the new GST reforms ensuring a smooth functioning and continuity of the taxation process as rolled out in the new GST framework.

There were however, frequent disruptions in the parliament by the opposition seeking an imminent discussion on the SIR of electoral rolls. The session had to be adjourned several times and the opposition even protested in the well of the house. 
(Rh/GP)

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