The Cabinet has cleared changes in the GST Bill, letting off 1% manufacturing tax and has guaranteed compensation to states for all losses of revenue in the first five years after the ascension of the indirect tax regime.
The Cabinet has cleared changes in the GST Bill, letting off 1% manufacturing tax and has guaranteed compensation to states for all losses of revenue in the first five years after the ascension of the indirect tax regime. The Cabinet, led by PM Narendra Modi, on Wednesday included in the Constitutional Amendment Bill that any Centre and state disputes are to be settled by the GST Council, which will have have representattives from both parties.
With states on the same side and after approval of the Cabinet, the government hopeful of getting the unresolved Goods and Services Tax (GST) Bill passed in the ongoing session of the Parliament, before it ends on August 12.
Former Finance Minister P. Chidambaram said that he is yet unaware of what the cabinet has agreed on or denied in the amendment of the tax reform. He refused to comment any further on the matter.
The GST Bill, with Cabinet induced changes, could come up in the Rajya Sabha as early as this week. The GST bill had been stuck in the upper house due to resistance from the opposition. But the government has accepted to reduce 1% tax on inter state transactions. Renuka Chowdhury earlier today went on Micro blogging site Twitter to express on happiness on the government meeting their demands. SHe said that Congress was always supporting the GST bill as long as it was “Pro People” and “Pro States.”
WATCH: GST Constitutional Amendment Bill: Cabinet approves changes
The changes approved by the Cabinet are to be applied to the Constitutional Amendment Bill, approved by the Lok Sabha last year. Once the Rajya Sabha approves this legislation, the amended charter will be going to Lok Sabha again for approval.