GST panel submits report in RS; proposes modifications
The select panel on Goods and Services Tax has submitted report in the Rajya Sabha with a proposal for three modifications to the Bill.
The modifications are related to Clauses 12,18, and 19.
Clause 12 (4) (e) is on GST Council’s powers on recommending rates within a band and the panel may propose that the ‘band’ be defined within GST laws. The panel felt that the 1 percent additional inter-state tax may lead to cascading of taxes, and may call for clarifying Clause 18 to prevent that.
Third is modification to Section 19, which is basically compensation for GST related losses to states for a period of five years. Also in addition there are set of suggestions on the GST rate but the GST council will decide on the final rate. Clarifying certain details of the report, Bhupendra Yadav, Chief, GSP Panel told CNBC-TV18 that it would be in the interest on the nation to enter into new tax regime. The new legislation would not only help reduce indirect taxes but also help reduce the cascading factor and help boost the economy. On GST rate, he clarified that a cap on the rate was not possible in the Constitutional Amendment and so the power has been given to GST Council to decide on rate. Talking about compensation to states, he said earlier it was up to five years but now it has been made for five years with consensus decision of the panel.
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