The government on Friday took the first step towards switching to a Goods and Services Tax (GST) regime by introducing The Constitution (122nd Amendment) Bill in the Lok Sabha amid demands for referring it to a departmental Standing Committee.
Though in favour of the GST, the Trinamool Congress opposed its introduction as some concerns of West Bengal were not addressed and the AIADMK followed suit citing irregularities and lacunae.
Introducing the Bill, Union Finance Minister Arun Jaitley said the issue had been discussed by a Standing Committee in the past, and was non-committal on the Opposition demand.
Assuring MPs that he “would not rush through” the Bill, he indicated that the government was prepared to wait till the next session to get it passed.
Later, briefing mediapersons, he said in his “personal view” the Bill did not need to be referred to a Standing Committee as it had already gone through the process.
He said the government was hoping to roll it out in April 2016.
Flagging key issues of concern, Mr. Jaitley said: “Service tax is entirely the Centre’s domain now. It is going to be shared with States. Places like Maharashtra, from where one-third of the national service tax comes, will benefit. When we share it with them, it will take care of octroi absorption into the GST... Additionally, we will make sure that for some period — two years — a one per cent additional tax is permitted to the States.... If some producing State, for some period, loses some money, I have provided a mechanism for five years. For the first three years, it is there entirely and then it tapers. The Centre will compensate them for any loss which has been suffered.”
