The Bill will also mention that dispute resolution will be decided by the GST council. The government has also included five years compensation clause for state governments for any loss that they may incur.
In a positive push for the Goods and Services Tax (GST) Bill, the Cabinet today gave green signal to GST Constitutional Act Amendments.
The Cabinet has removed the controversial one percent manufacturing tax from the Constitutional Bill, which was one of the demanded by the Opposition, led by Congress.
The government has also included five years compensation clause for state governments for any loss that they may incur. Earlier, this tiem period was mentioned as ‘up to’ five years in the draft GST Bill.
The Bill will also mention that dispute resolution will be decided by the GST council.
Calling the news positive, Rajeev Dimri of BMR Advisors says that while some issues have been resolves, some still exists like the revenue neutral rate (RNR).
However, he adds that since there is no compensation, states should not be concerned about the rate.
While the move in the correct direction, its further course will depend upon discussion between government and the Congress, says Thomas Isaac, Finance Minister of Kerala.
If the Bill doesn’t see light in the ongoing monsoon session, then GST will only come into effect in 2020, Isaac says.
A select GST panel has drafted a new Bill comprising of above changes. Post this, attempts will be made to push the Amendment Bill to Rajya Sabha.
Transcript to follow..
Source : http://www.moneycontrol.com/news/economy/push-for-gst-cabinet-approves-gst-constitutional-act-amendments_7129921.html