Parl panel readies report on GST, Govt. gives in on major demand

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Parl panel readies report on GST, Govt. gives in on major demand

A Parliamentary Committee, which scrutinised the crucial GST Bill, has prepared a draft report wherein the Government has agreed to provide compensation to States for any revenue loss for five years, thus giving in to one of the major demands from several opposition parties.

According to sources, the Government will move an official amendment to the Goods and Services Tax (GST) Bill, a Constitution amendment legislation that is aimed at overhauling the tax structure in the country.

The amendment relates to Clause 19 of the Bill, amended version of which now reads as: “Parliament may, by law, on recommendation of the GST Council, provide for compensation to the States for loss of revenue arising on account of implementation of GST for a period of five years,” a source told PTI.

The earlier version said the compensation would be paid for “up to five years”, the source said.

The opposition parties also wanted that the word ‘may’ be changed to ‘shall’ in the said clause. However, the Government argued that as per the Constitution, both words mean the same thing.

As per the schedule, the report is to be submitted to Rajya Sabha by July 24, three days after the commencement of the Monsoon Session of Parliament.

Congress is preparing a dissent note which would say that it cannot support a bill which is not “simple and comprehensive”.

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http://zeenews.india.com/business/taxes/tax-news/parl-panel-readies-report-on-gst-govt-gives-in-on-major-demand_131692.html

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