A Rajya Sabha panel on Goods and Services Tax (GST) has endorsed almost all the provisions of the Constitution Amendment Bill. The 21-member Select Committee, in its reported submitted to the House today, suggested changes in the clauses about compensation and levy of one per cent additional tax by the states on inter-state supply of goods. It said one per cent additional tax will have cascading effect on taxes and suggested change in definition of supply. The Committee also recommended that the Centre should compensate to the states for any revenue loss for a period not less than five years. The GST bill has a provision of 100 per cent compensation for a period, which may extend to five years. <br/><br/>The Committee has recommended adequate measures to be taken by the states to ensure sufficient revenue flow to the local bodies. It said with the introduction of the GST States and Union Territories would have many more options to generate and augment their revenue sources.<br/><br/>However, the report is marked by dissent notes from Congress, AIADMK and Left parties which have expressed their opposition to the Bill in its present form. The AIADMK and the Congress have suggested 100 per cent compensation for a period of not less than five years to the manufacturing states like Tamil Nadu. The AIADMK said levy of one per cent additional tax will not meet their requirements. Instead, states should be allowed to retain four per cent of Central Goods and Services Tax, CGST part of the Integrated Goods and Services Tax, IGST on all inter-state sales and transfer of goods and services.<br/><br/>The Congress said it is impossible for it to support the GST bill, which is neither simple nor comprehensive. The party said it is pitted with compromises, exclusions and exceptions. It said there is a need to specify a ceiling rate of 18 per cent of GST that do not impose unfair burden on consumers. The Left parties in their dissent note said that the Centre has absolute say over the decision making process on the GST. They said, the States will lose their financial independence in the long run and Corporate will dictate the policies of even the local governments.