Goods and Services Tax (GST)

GST Bill: government may go for compromise


Instead of one fixed GST rate, govt. may go for a tax band of 18 to 24%.

  1. Of the 3 objections, Congress has on the GST Bill, it is becoming increasingly clear that government is prepared to address it.
  2. It is willing to scrap the 1 per cent additional origin tax proposed to help manufacturing states, to make up the losses they may incur due to GST.
  3. By promising to make up those losses for 5 years and set up a grievance redressal mechanism.
  4. On third issue, capping the GST, a committee headed by CEA Arvind Subramanian is preparing a report that could be out this week.
  5. Government feels that if there is a fixed rate in the constitutional amendment, any change in future will be difficult.

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