The Cabinet chaired by the Prime Minister also cleared an amendment in the constitution bill to set up a GST council comprising representatives of both the Centre and the states to adjudicate on any dispute between the states and the Centre or among the states.
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The cabinet today cleared changes in the GST Constitutional Amendment Bill, dropping the 1% manufacturing tax and and guaranteeing compensation for any revenue losses states may experience in the first five years of rolling out the proposed indirect tax scheme.
The Indian government on Wednesday made crucial amendments to its goods and services tax bill in a move to enlist the support of opposition parties as well as state governments.
Mumbai: Shares of logistics firm rallied by up to 7 per cent on July 28 amid rising hopes of passage of the long-pending Goods and Services Tax (GST) Bill in the ongoing monsoon session of Parliament. Jaitley reached out to Anand Sharma as well, apart from meeting SP leader Ram Gopal Yadav and CPI (M) general secretary Sitaram Yechury.
However, according to the report by the TV channel Samajwadi Party wants this turnover limit to be raised from Rrs 1.5 crore.
However, the Select Committee of the Rajya Sabha had recommended 100% compensation for the likely loss of revenue during that period.
Modi government has managed to get most regional parties on board, with the likes of Samajwadi Party also supporting the bill. As a measure of support for the states, petroleum products, alcohol for human consumption, and tobacco have been kept out of the purview of the GST.
The other demands of including GST rate in the statute and a Supreme Court judge-headed dispute resolution body have not been accepted.
By doing away with the 1 percent inter-state tax over and above the GST rate, the government has met one of the three key demands over which Opposition Congress has been blocking the Bill in the Upper House.
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The government did not accede to the Congress demand of specifying the GST rate in the Constitution itself.
