Zee Media Bureau
New Delhi: The Union Cabinet on Wednesday approved amendments as proposed by Rajya Sabha Select Panel on GST Constitution Amendment Bill.
The Rajya Sabha Select Committee, headed by BJP’s Bhupender Yadav, in its report submitted to the House has suggested changes in clauses pertaining to compensation and levy of 1 percent additional tax by the states on inter-state supply of goods.
The committee has recommended that the provision in the Bill that provided Centre “may” compensate states for a period up to five years for any revenue loss be substituted by a commitment for compensation for five years.
In a clause relating to levy of 1 per cent additional tax by states, the committee suggested that the levy should only on “all forms of supply made for a consideration“.
It, however, retained the representation of the Centre and States at the proposed level at one—third and two—third despite demand to reduce Centre’s representation to one—fourth.
The government’s plans to roll out a single—rate Goods and Services Tax (GST) by April 1, 2016.
The GST, which is being touted as the biggest reform in the indirect taxation since independence, would subsume levies like excise, service tax, and other local levies.
With Agency Inputs