A day ahead of the commencement of the monsoon session of Parliament, a Rajya Sabha select committee has adopted a report on the contentious Goods and Service Tax Bill after the Centre agreed to compensate States for revenue loss for five years.
But the Congress filed a dissent note, even as the Left parties (the CPI and the CPI-M), sources said, will file theirs by Tuesday noon. The Congress has also sought 15 amendments to the draft report which the Chairman, sources said, will incorporate, provided he is permitted “editorial discretion.”
The government will move an official amendment to the GST Bill to provide for compensation for any revenue loss. The amendment relates to Clause 19 of the Bill, and its amended version will read: “Parliament may, by law, on recommendation of the GST Council, provide for compensation to the States for loss of revenue arising on account of implementation of GST for a period of five years.”
The 21-member panel, headed by the BJP’s Bhupender Yadav, has adopted the report that is likely to be submitted to the Rajya Sabha later in the week.
The Congress, which has been rooting for a “simple and comprehensive” GST Bill, has expressed its dissent on eight provisions: this includes opposition to giving the States the power to levy 1 per cent additional tax as it feels that if that provision is implemented, States like Gujarat, Maharashtra and Tamil Nadu will benefit at the cost of other States.