Rajya Sabha panel gives thumb up to almost all the provisions of GST Bill

The Rajya Sabha Select Committee on Wednesday endorsed most of the provisions of the Goods and Services Tax (GST) Bill in the Parliament, while agreeing to demands of parties like TMC for providing five-year compensation to states.

Headed by BJP's Bhupender Yadav, the panel in its report suggested changes in clauses pertaining to compensation and levy of 1% additional tax by states on inter-state supply of goods, reported news agencies.

The report, however, is not liked by the Congress, AIADMK and Left parties. They have expressed their disapproval over the GST Constitution Amendment Bill in the existing form.

The bill has been approved by the Lok Sabha. It will now have to be taken up in the Upper House for its passage. As it is a Constitution Amendment Bill, the bill has to be approved by two-third members in the Rajya Sabha.

The ruling NDA government does not enjoy majority in the Rajya Sabha and will need support of regional parties and allies for passage of the bill.
The committee has suggested that the provision in the bill that provided Centre "may" compensate states for a period up to five years for any revenue loss to be substituted by a commitment for compensation for five years.

In a clause relating to levy of 1% additional tax by states, the panel recommended that the levy should only on "all forms of supply made for a consideration".

It, however, retained the representation of the Centre and states at the proposed level at one-third and two-third despite demand to reduce Centre's representation to one-fourth.

The government plans to roll out a single-rate GST by April 1, 2016. The GST, which is being touted as the biggest reform in the indirect taxation since independence, would subsume levies like excise, service tax, and other local levies.

"Administratively we are taking all steps both Centre and states to meet April 2016 deadline. Effort would be to have reasonable rate of GST so that GST experience is a successful experience for the whole country," Revenue Secretary Shaktikanta Das told reporters here.

(Image: Indiatimes)