The Government is looking for the Cabinet™s nod to amend the Constitution Bill on Goods and Services Tax by incorporating some of the suggestions from the Rajya Sabha, and thereby will soon seek the approval of the Cabinet to introduce this bill.
Further, the government has entered into an agreement in which they have agreed to provide with the full five year compensation to states for any of the revenue loss sustained due to introduction of the bill.
The bill has also delayed its introduction because of the various challenges and political disruptions and which has become a point of debate. Instead, the panel recommended a practical solution to reduce its cascading impact by excluding stock transfers within a company from this levy. According to industry sources, about 80-85% of any large factory™s output goes out of the state where it is located and a bulk of this is stock transfers.
So, now the cabinet expects to reach the stage of finalization of the bill once it surpasses the stage the political interventions and consensus of the parties.
