The Modi government is preparing ground to introduce the bill in the Parliament next week.
The Cabinet Wednesday approved key changes to GST Constitutional Amendment Bill, dropping the 1 per cent additional tax on inter-state sales as the Modi government is preparing ground to introduce the bill in the Parliament next week. It also raised foreign shareholding limit to 15 per cent in stock exchanges, from the present 5 per cent.
On Tuesday, at the Empowered Committee of State Finance Ministers meeting, the crucial revenue neutral rate (RNR) of taxation as well as capping of the GST rate in the Bill did not find favour with many states. This could prove to be a hindrance, with the government looking to build consensus on the bill before introducing it in the Rajya Sabha.
“All states were of the view that the tax rates put forward by the Chief Economic Advisor are not acceptable. There was no consensus on what the rate should be. It can be 18 per cent or above that. That was the consensus,” Kerala Finance Minister Thomas Isaac told reporters after the meeting.
West Bengal Finance Minister Amit Mitra, who is the committee chairman of the panel, said it was very important to agree on the wording as the GST rate should not become a burden on the common man. He added that the existing level of trends of revenue of the union and states must also be safeguarded.
On the matter of capping the GST rate, a key demand of the Congress Party, Mitra said there was “consensus to keep the GST rate out of the Constitutional Amendment Bill”.
Source : http://indianexpress.com/article/india/india-news-india/gst-bill-rate-cabinet-rajya-sabha-2939146/