The Union Cabinet yesterday approved amendments proposed by Rajya Sabha Select Committee on Goods and Services Tax, GST Constitution Amendment Bill. <br/><br/>The amendments include compensation to the states for 5 years instead of upto 5 years for any revenue loss due to introduction of GST. According to sources, the Cabinet decided that the modalities for levy of 1 percent tax over and above the GST rate by states as well as the band rate will be finalised while framing the rules. <br/><br/>The Rajya Sabha Select Committee in its report last week suggested GST rate to be no more than 20 per cent and levy of 1 per cent additional tax by states only on actual sales and not on inter-company stock or inventory transfer. <br/><br/>In another decision the Cabinet approved a comprehensive anti-hijack bill that provides for death penalty for hijackers even in the event of on-ground staff casualties. The Cabinet also approved a new Consumer Protection Bill that seeks to replace a 29-year-old law and proposes to set up a regulatory authority which will have powers to recall products and initiate class suit against defaulting companies, including e-tailers. <br/><br/>The Cabinet also gave its nod for creation of a 20,000-crore rupees National Investment and Infrastructure Fund, NIIF for development of infrastructure projects. Cabinet also gave its approval to foreign investment in the Alternative Investment Funds, AIFs for facilitating domestic investment.

The Union Cabinet yesterday approved amendments proposed by Rajya Sabha Select Committee on Goods and Services Tax, GST Constitution Amendment Bill. <br/><br/>The amendments include compensation to the states for 5 years instead of upto 5 years for any revenue loss due to introduction of GST. According to sources, the Cabinet decided that the modalities for levy of 1 percent tax over and above the GST rate by states as well as the band rate will be finalised while framing the rules. <br/><br/>The Rajya Sabha Select Committee in its report last week suggested GST rate to be no more than 20 per cent and levy of 1 per cent additional tax by states only on actual sales and not on inter-company stock or inventory transfer. <br/><br/>In another decision the Cabinet approved a comprehensive anti-hijack bill that provides for death penalty for hijackers even in the event of on-ground staff casualties. The Cabinet also approved a new Consumer Protection Bill that seeks to replace a 29-year-old law and proposes to set up a regulatory authority which will have powers to recall products and initiate class suit against defaulting companies, including e-tailers. <br/><br/>The Cabinet also gave its nod for creation of a 20,000-crore rupees National Investment and Infrastructure Fund, NIIF for development of infrastructure projects. Cabinet also gave its approval to foreign investment in the Alternative Investment Funds, AIFs for facilitating domestic investment.

The Union Cabinet has approved amendments proposed by Rajya Sabha Select Committee on Goods and Services Tax, GST Constitution Amendment Bill. The amendments include compensation to the states for 5 years instead of upto 5 years for any revenue loss due to introduction of GST.<br/><br/>The Cabinet has also approved a new Consumer Protection Bill 2015. It seeks to replace the existing law and proposes setting up a regulatory authority to curb unfair trade practices. The decision was taken by the Cabinet this evening. Sources said, the new bill will repeal the 29-year-old Consumer Protection Act, seeks to create a Consumer Protection Authority on the lines of the US and European countries for fast-tracking redressal of consumer grievances. <br/><br/>The Cabinet also approved the amendments to the anti-Hijacking bill that will give more teeth to the government in dealing with hijacking incidents involving Indian aircraft. The Anti-Hijacking Bill 2014, introduced in Rajya Sabha in December was referred to the Parliamentary Standing Committee. <br/><br/>The Cabinet gave its nod for setting up of a National Investment and Infrastructure Fund, NIIF. It will have an initial corpus of 20,000 crore rupees which can be leveraged by infrastructure companies as proposed by the Finance Minister in the Budget for the current fiscal.<br/><br/>Union Cabinet has given its approval to foreign investment in the Alternative Investment Funds (AIFs) for facilitating domestic investment. According to sources, the decision is a follow up to the Finance Minister's announcement in the this year's Budget speech. It would lead to availability of more funds to start-ups, early stage venture , social venture, Small and Medium Enterprises, infrastructure or other sectors considered as socially or economically desirable but regarded as high risk and having uncertain returns. The AIFs are required to be registered with SEBI, operate within the regulatory framework of RBI, comply with KYC norms and operate in specified sectors.