• Home
  • News
  • Business
  • State governments urge for time extension of 1 percent GST

State governments urge for time extension of 1 percent GST

By Sujata Sachdeva

loading...

Scroll down to read more
Many state governments have urged the Centre to extend the time period of one per cent additional tax on the proposed national goods and services tax (GST) from the current accepted two years. As per the constitutional amendment Bill on GST, “An additional tax on the supply of goods, not exceeding one per cent, in the course of inter-state trade or commerce shall be levied and collected by the Government of India for a period of two years or such other period as the Goods and Services Tax Council may recommend.”

Kerala’s finance minister, K M Mani, who is the Chairman of the empowered committee, has said that some states have expressed concern over the CST compensation and have sought compensation for 10 years or beyond for the revenue loss from a GST. He added that manufacturing states such as Maharashtra and Gujarat have demanded they be allowed to levy two per cent additional tax over and above the state GST rate, though no decision had been taken on this. For a decision, on time extension as well as this provision, requires a two-third majority of the empowered committee.

Union FM Arun Jaitley, expressing optimism over the constitution amendment Bill, introduced in Parliament's winter session expects it to be passed in the current session. He is certain about the introduction of GST, creating a nationally unified market and removing trade barriers in the form of cascading effects of taxation, from April 1, 2016.

GST