Parliamentary Standing Committee on Finance finalised GST Report

The Parliamentary Standing Committee on Finance on 19 July 2013 finalised its report on Goods and Services Tax (GST) which will be tabled in Parliament in the monsoon session beginning 5 August 2013.

The Goods and Services Tax (GST) Bill, was introduced in Parliament in 2010, and is being scrutinized by the Standing Committee on Finance. It is now decided that the states and the Centre would together going to finalise the draft and will bring it back to Parliament.

The proposed GST is basically intended at bringing in a common tax regime for goods and services by subsuming most indirect taxes. GST will directed help in increasing the revenue collections.

It is important here to note that the GST roll-out has missed several deadlines due to differences between the states and the Centre over contentious issue of central sales tax, compensation to states and design of GST structure. The Constitution Amendment Bill is being drafted. It is being placed before the Council of Ministers on 22 July 2013.

Suggestion of the GST Panel

• The panel has suggested that the government look into the issue of revenue loss due to implementation of GST regime in case of higher resource mobilising states.
• The panel has also suggested that the Centre should prepare a framework for the GST regime in which the revenue generating states should be adequately compensated.
• The panel will also look after the gas pricing issue.