GST Tangle: Arun Jaitley To Hold Discussions With State Finance Ministers

In order to break the deadlock on goods and services tax (GST), Union Finance Minister Arun Jaitley will meet finance ministers of states. The Narendra Modi-led government is keen to implement GST in the next financial year in a bid to accelerate economic growth.

As per media reports, the deal is likely to be clinched soon and the government intends to introduce a constitutional amendment bill for this in the ongoing session of Parliament. "Most states are on board. Just a couple have concerns and the minister will address those in meetings over Monday and Tuesday," The Economic Times quoted a senior Finance Ministry official.

"The matter (GST) was discussed elaborately. The discussions are moving in a positive direction," Empowered Committee Chairman Abdul Rahim Rather said. Since crude oil prices have fallen to $60 per barrel, the Finance Ministry can now use the savings to compensate states after GST gets implemented.

According to some estimates, GST is likely to contribute two percentage points to India’s GDP growth. It was originally meant to be implemented on April 1, 2010.