The Select Committee of the Rajya Sabha on the Goods and Services Tax Bill has advised changes in provisions relating to compensation for states and on levy of one percent additional tax by states on the inter-state supply of goods.
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Most members in the panel had demanded that the States be compensated at least for five years. “The committee strongly recommends that while drafting the state GST laws, due consideration to the third tier of the government as has been guaranteed by the Constitution be given and provisions of devolution of taxes to the local bodies be made”.
New Delhi, Jul 22 (PTI) The Centre and states are taking administrative steps to meet the April 1, 2016 deadline for roll out of the Goods and Services Tax (GST), Finance Ministry said today.
The GST is seen as the key to facilitate industrial growth and improve the country’s business climate.
Congress general secretary Shakeel Ahmed told IANS that the BJP opposed the GST Bill when the UPA tried to bring it in, but now they are posing as its champions.
“GST Select Committee examined all aspects including listening to views of over over 58 organizations, the Committee feels that the Bill earlier passed by the Lok Sabha is the right Bill”.
The Committee, headed by Bhupender Yadav (BJP), in the report said the provision of 1 per cent additional tax in its present form is likely to lead to cascading of taxes and has suggested to define the word “supply”. Congress, however, is yet to give up its opposition to the bill and on Monday moved dissent on the panel’s report, arguing that it was based on compromises and exclusions. The GST Council must be supplemented and reinforced with a GST Disputes Settlement Authority in toto, they suggested. The Left parties may join Congress in filing a dissent note, sources said.
“That is the matter which GST Council will decide”. Once the bill is passed, the Centre and states will have to enact three other laws for GST to be implemented.
“Accepting the Congress’s demand for reducing the Centre’s representation to one-fourth opens up the possibility of the States always overruling the Centre and it would cease to have a say on the GST”, a top government source said.
On compensation to the states for revenue loss following implementation of the GST, the Committee suggested that the Bill should clearly provide for compensation for a period of five years.
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The GST Council is entrusted with the task of overseeing its implementation, besides deciding on rates and exemptions.
