News:- Centre hopeful of GST nod at Oct 21 meet The Union government is pushing states to agree to its proposed Constitution amendment Bill on a goods and services tax (GST) when the Empowered Committee (EC) of State Finance Ministers meets here on October 21. The finance ministry also wants the EC to expedite work on the GST legislation. Release of Central Sales Tax (CST) compensation to states is part of the proposed bargain. For 2013-14, the government had budgeted Rs 9,000 crore towards compensation to the states for losses on account of reduction in the CST rate but the money is yet to be released. Finance Minister P Chidambaram has told the states they’d get CST compensation only in return for help in taking the Constitution amendment Bill and the GST legislation forward at a fast pace, said a ministry official. Industry is putting pressure on the government to introduce a GST. Though the rollout is not possible during the tenure of the current government, with a general election due in about seven months, Chidambaram is trying for passage of the constitution amendment. It would be a feat, particularly at a time when the UPA government is getting flak for lack of big reforms. Discussion on the constitution amendment tops the agenda for the October 21 meet. The EC will consider a report of a sub-committee of states’ officials, set up in the previous meeting on September 19, to reconcile the recommendations of Parliament’s standing committee on finance, the revised draft of the Bill and states’ views. If it does not propose any major changes that open another can of worms, the Centre will table a Bill in the winter session of Parliament, likely next month. It would have to be passed by a two-third majority in both chambers and then be ratified by the legislatures of at least half the states. Read more at: business-standard/article/economy-policy/centre-hopeful-of-gst-nod-at-oct-21-meet-113100200566_1.html
Posted on: Fri, 04 Oct 2013 04:58:59 +0000
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