GST deadlock over as states resolve contentious issues: Modi

The body would consist of a chairperson and two other members. The Empowered Committee also decided to suggest to the Finance Ministry to incorporate provisions for allowing states to opt out of the GST fold if they desired so, he said, adding "in the present GST Constitution Amendment Bill there is no such provision. We cannot force states to accept GST".

Modi said that taxation of petroleum products would not be included in the GST legislation, giving freedom to states to impose the levy.

Stating that there was a general consensus over the design and basic features of the GST, Modi said the states demanded the centre should not hold rights to impose tax on declared goods like coal and LPG.

"The states want removal of this provision of declared goods from the Bill," he said.

In yesterday's meeting, the issue of states agreeing for a lower payment of Rs 34,000 crore for phasing out the Central Sales Tax, a precondition for rollout of the GST.

The centre had then promised the states that it would bear losses due to reduction of CST.

The Empowered group also set up three sub-committees to resolve issues which could not be agreed upon by the finance ministers of different states, he said, adding that they would submit report in three months.

They would deal with revenue neutral rates, withdrawal of dual control system and taxation of inter-state movement of goods.

GST rollout has missed several deadlines on account of differences over contentious issue of CST compensation and design of the

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