New Delhi :
The NDA govt is all set to floor the much-awaited Goods and Services Tax (GST) Bill in Rajya Sabha on Wednesday. The Centre was unable to convert it into law during Budget Session. The government tried to even extend the session by a few days in order to push the bill but was unable to do so.
Finance Minister Arun Jaitley said he hoped that the opposition will help the Govt to pass the Bill in this session. The GST Bill was not the brain child of NDA, it was first introduced in 2011 by the UPA govt but has always been on the backburner as states did not cozy up to the fact that their revenues might decrease once GST becomes a law.
The major difference in NDA Bill is the additional 1pc tax on inter-state sales. This tax will go to the originating state. The additional tax will be introduced for at least least two years after the introduction. It is also mentioned that this practice shall continue for at least two years after the introduction of GST.
Secondly, the NDA bill agrees to guarantee the states for any loss of revenue due to introduction of GST. The compensation shall be available for a maximum of five years.
Thirdly, the NDA government's bill specifies that GST shall not be applicable on petroleum products at the initial stage. Later, even the petroleum products may be covered in GST, subject to recommendation of the GST council.
Fourthly, the NDA bill also includes model laws for GST, which means that a basic legislative framework is also included in addition to the Constitutional Amendment bill. The earlier UPA Bill had talked about a "Dispute Resolution Authority" in case there are any disputes between the Centre and the States. However, the NDA bill has done away with this, and talks instead about such disputes to be referred to GST Council.