The stalemate over Goods and Services Tax, GST is still continue after the Finance Minister Arun Jaitley hold a third meeting with the states Finance Ministers in New Delhi today. Talking to the reporters, the Chairman of Empowered Committee of State Finance Ministers, Abdul Rahim Rather said that centre did not address their concerns, particularly on entry tax and taxation of petroleum products. He said that the centre should set up a GST compensation fund through constitution amendment. Mr Rather also said that government come out with such a big tax reform so therefore it is not advisable to go without states consent.The states have been demanding that the centre to compensate them for any loss of revenue on implementation of the GST for five years and a clause regarding the compensation be included in the Constitution Amendment Bill. Earlier Mr Jaitley had proposed to pay Rs 11,000 crore as part payment of dues towards central sales tax compensation pending from 2010-11. They are also demanding that alochol and tobacco products be kept out of the purview of the GST. The government wants to roll out the GST by April 2016, but it has missed several deadlines because of lack of consensus among states over certain crucial issues on the proposed new tax regime.
News On AIR | December 11, 2014 8:53 PM
GST talks hist roadblock; States says, Centre failed to address their concern