GST compensation to be included in Constitutional Bill

The Centre has agreed to include compensation to be paid to States for Goods and Services Tax (GST) rollout as part of the Constitutional Amendment Bill.

“The compensation structure would form part of the Bill. It will be paid in tranches to the States,” an official said.

A consensus on this crucial issue will make it easier of the Centre to introduce the GST Bill in the ensuing winter session of Parliament beginning on November 24.

The official further said that the Finance Ministry has floated a draft Cabinet note on GST for inter-ministerial consultations.

“The first tranche of compensation to States will be made available in the upcoming session,” the official added.

However, the official added that further discussions would be needed on revenue neutral GST rate and threshold limit for imposing the levy.