Modi to take further approach for implementing GST

Dated 5th September, 2014

States are demanding a compensation mechanism in the Constitution Bill. Furthermore, they want petroleum to be out of the GST and do not want entry tax to be subsumed as a Constitutional right.

Past tours have not helped in resolving the differences between Centre and states. The states are still haggling with the Union finance ministry over the same old issues. The EC is set to embark upon its next trip to Beijing and Shanghai from September 23 to October 1.

The Centre may mull keeping petroleum out of GST but may not include it as a Constitutional Amendment.

GST or the goods and services tax is an all-inclusive value added tax (VAT) on goods and services ranging from production to the end-point of consumption. GST will reduce the number of times an individual pays taxes thereby reducing the possibility of any sort of manipulation by tax authorities.