GST – Finance Minister says “Fingers Crossed”

It is reported that that the Constitution Amendment Bill (GST Bill) is listed for discussion on 2nd August,2016 raising expectations of the Bill getting the nod from the Rajya Sabha.

It is stated that the Bill has been amended to drop the proposed 1% additional tax on interstate supply and that the clause on compensation of revenue loss to the States for the first five years of implementation of GST has been worded as discussed in the meeting of the Empowered Committee of State Finance Ministers.

It is reported that sources close to the congress party high command have stated that there had been some progress and an outcome is possible.

While the developments point to passing of the Bill in the Rajya Sabha, the Congress party has not revealed its stance and strategy which has probably made the the Finance Minister Arun Jaitley state that he is keeping his fingers crossed.

Let us hope that national interest take precedence over politics and the GST bill is passed in the Rajya Sabha. Once the amended Bill is through in the Rajya Sabha, it will go back to Lok Sabha for ratification of the Amendments.

One more report of concern to the consumer is that the Standard Rate of GST, the States are looking for, is between 20% to 22% and not the 18% that has been discussed so far.

Let us hope for the best!

Date : 1^st August, 2016