New Delhi: With most states on board, the Empowered Committee of State Finance Ministers on GST will submit its views tomorrow to the Parliamentary panel looking into the Constitutional amendment bill for introduction of new indirect tax regime. "Tomorrow, I am going to present the proposal before the Parliamentary committee... Most of the states are in agreement with GST," said K M Mani, chairman of the Committee. "Some states are asking for compensation, some states are asking for review of additional tax. Those things have to decided," he said.
Mani, who is Finance Minister of Kerala, was talking to reporters after meeting Union Finance Minister Arun Jaitley. The Centre proposes to roll out Goods and Services Tax from April 2016. The Constitutional Amendment Bill for rolling out of GST has been referred to a Rajya Sabha Select Committee. The Lok Sabha has already cleared the Bill. States are pressing the Centre for compensating them fully for the loss of revenue in the first five years of GST replacing their taxes. The Centre has agreed to compensate states fully in the first three years and partially in fourth and fifth year. The issue of compensation, besides other matters, was raised at a recent meeting of the Empowered Committee.
