August 2, 2016 6:23 PM

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GST Bill amendments circulated, RS to take it up tomorrow

The government has circulated official amendments to the GST bill to drop one per cent additional tax and include a definite provision in the statute for compensating states for revenue loss for 5 years as it gears up to discuss the long-pending bill in the Rajya Sabha tomorrow.<br/><br/>Under the modified provisions of GST Constitutional Amendment Bill circulated among the members today, GST Council will be required to establish a mechanism for adjudication of<br/>disputes, which could arise between the Centre and states or among states themselves.<br/><br/>The 2014 bill authorised GST Council to decide upon the modalities for resolution of disputes. With these official amendments, the government has<br/>partially met the demands of the Congress party which has been<br/>blocking the bill in the Rajya Sabha. One of the three demands of the Congress was to do away with the one per cent additional manufacturing tax.<br/><br/>With regard to the demand for putting a GST rate cap in the Constitution, the government has not mentioned anything in<br/>the official amendments.<br/><br/>Finance Minister Arun Jaitley, at a meeting with his state counterparts last week, promised to keep the incidence of tax low while safeguarding the revenue of the states.<br/><br/>Mr. Jaitley has been meeting leaders of Congress and other parties, including SP, BJD, TMC and RJD, to build a consensus on the passage of the long pending indirect tax reform bill in<br/>the Rajya Sabha. It was approved by the Lok Sabha in May 2015.<br/>

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