Rajya Sabha's Select Committee on Goods and Services Tax (GST) has endorsed almost all of the 21 clauses in the GST Constitution Amendment Bill
Rajya Sabha's Select Committee on Goods and Services Tax (GST) has endorsed almost all of the 21 clauses in the GST Constitution Amendment Bill, which seeks to create a pan-India tax regime and a common market, ending the multiplicity of central and state taxes.
The report on the Bill was sent presented to the Upper House this morning. The 21 member Committee is headed by BJP leader Bhupendra Yadav.
"GST Select Committee examined all aspects including listening to views of over over 58 organizations, the Committee feels that the Bill earlier passed by the Lok Sabha is the right Bill. We have given only one suggestion, and that is on the compensation to be given to the states for five years," Mr Yadav told reporters in Parliament.
The Committee also said that one per cent additional tax over GST rate will have cascading effect on taxes; suggests change in definition of supply.
It rejected the demand of opposition parties for lowering Centre's say in the GST Council, the current representation of Centre having one-third and states having two-thirds representation will continue. Congress had been demanding that the share of states in voting in the GST council should be 75 per cent and the Centre should be 25 per cent in the interest of co-operative federalism.
Union Finance minister, Arun Jaitley, has accused the Congress of opposing the Bill that it was supporting earlier. Mr Jaitley said, "We are hopeful that Cong will reconsider its irresponsible stand on GST, it is dissent against its own bill and chief ministers."
Earlier on Monday, the Rajya Sabha Select Committee had adopted a report endorsing a majority of provisions of the GST Bill after the Centre agreed to compensate states for revenue loss for 5 years.
In the Budget session of Parliament earlier this year, the constitutional amendment bill for GST was passed by the lower house (Lok Sabha) with a two-thirds majority and was subsequently sent to the select committee of the upper house.
The Centre hopes to roll out GST by April 1, next year.