Govt agrees to panel recos on GST loss compensation

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The Central government has indicated its willingness to amend Section 19 to get all state governments on board and the Select Panel is unanimous in this decision.

Govt agrees to panel recos on GST loss compensation
In a big breakthrough for the goods and services tax (GST) bill, sources suggest that government is likely to accept Select Panel’s view on compensating to states for 5 years.The Central government has indicated its willingness to amend Section 19 to get all state governments on board and the panel is unanimous in this decision.

With regards to other issues like changes in wording some clauses though not material, the government is likely to move ahead on some of those, say sources.

However, on the Congress demand to do way with 1 percent additional manufacturing tax, there has been no unanimity on the issue. So the Congress is isolated on that issue.

Meanwhile, the Shiv Sena too has been maintaining if the Octroi law was done away with then compensation should be worked into the law but the Select Panel seems to have suggested that when the State Legislator brings in the legislation or the laws for SGST then this Octroi law part will be dealt with.

So as of now, most regional parties have been brought onboard as far as GST is concerned and there are also talks that the Congress will soften its stance but a lot depends on the first couple of days of the parliament monsoon session.

Source: Moneycontrol.com

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