New Delhi: Prime Minister Narendra Modi has given the approval for going ahead with the biggest tax reform initiative - the Goods and Services Tax. The government will now try to introduce the Constitutional Bill for GST in the Winter Session of Parliament.
The government has decided to make a few amendments. In the Constitution Bill, both the Centre and States would be allowed to levy GST on petroleum products. But practically, the states would continue to levy their excise rates, preventing a revenue loss for them.
The Centre is also trying to convince the Sates on allowing a GST compensation mechanism. Finance Minister Arun Jaitley will be meeting state finance ministers next month. He met the Prime Minister over the issue on Tuesday.
Several states have expressed concerns over losing autonomy and facing revenue losses if GST comes into play.
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