Introducing the Bill, Jaitley said the concerns raised by the states have been accommodated. "Both Centre and the states will benefit from the GST rollout,"
A single rate GST will replace central excise, state VAT, entertainment tax, octroi, entry tax, luxury tax and purchase tax on goods and services to ensure seamless transfer and end of "inspector raj" as well as "tax on tax
While liquor has been completely kept out of the GST, petroleum products like petrol and diesel will be part of the new regime from a date to be decided at a future date by the GST Council, which will have two-third of its members from states.
As regards the compensation to the states on account of any possible loss of revenue following implementation of the GST, Jaitley said there will be 100 percent compensation in first three years, 75 percent in the fourth year and 50 percent in the fifth year
The revised Bill takes into account the deal reached between states and Centres on contentious issues.
The launch of GST has been hanging in balance for about seven years now as states were concerned about their revenue losses on introduction of the new tax regime.
While liquor has been completely kept out of the GST, petroleum products like petrol and diesel will be part of the new regime from a date to be decided at a future date by the GST Council, which will have two-third of its members from states.
As regards the compensation to the states on account of any possible loss of revenue following implementation of the GST, Jaitley said there will be 100 percent compensation in first three years, 75 percent in the fourth year and 50 percent in the fifth year
The revised Bill takes into account the deal reached between states and Centres on contentious issues.
The launch of GST has been hanging in balance for about seven years now as states were concerned about their revenue losses on introduction of the new tax regime.
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