The Centre has suggested including both petroleum products and liquor under the proposed goods and services tax (GST), a recommendation, which was made by the Parliamentary Standing Committee on Finance as well.
The suggestion has been made by the Centre in the revised draft of the Constitution Amendment Bill circulated among the states, wherein it has said that these items should not be barred by the Constitution. The standing committee submitted its report to the Centre last month, recommending that the exclusions should be kept to a minimum to ensure an integrated, comprehensive and seamless GST regime.
“The major change is certain exclusions were made in the original draft, exclusion of certain goods from the GST, like petroleum products and liquor. Now the government of India says these goods will come under GST... We have decided that detailed discussion will take place in the next meeting in Meghalaya,” Abdul Rahim Rather, chairman, Empowered Committee of state finance ministers, told reporters here after a meeting. The next meeting of the EC will be held in November.
The EC has also decided to set up a sub-committee comprising central and state government officials to reconcile the recommendations of the standing committee, the revised draft of the constitution amendment bill, and the decisions taken by the states in their meeting in Bhubaneswar in January over the design of GST.