GST Bill in Winter Session

New Delhi, Oct. 21: The finance minister Arun Jaitley on Tuesday said the revised Constitution Amendment Bill to roll out GST would be introduced in the forthcoming Winter Session of Parliament.

He also said the first “tranche” of compensation to states for their revenue loss arising due to phasing out of Central Sales Tax ( CST) may also be taken up in the Winter Session.

“Confident of introducing revised GST Constitution Amendment Bill in the Winter Session. Targeting Winter Session for transfer of first tranche of CST compensation ( to states),” Mr Jaitley said.

The government proposes to implement the Goods and Services Tax ( GST) from April 1, 2016, and the new Finance Commission may be set up ahead of its schedule to look into the issues related with the new indirect tax regime.

The Congress- led UPA government in 2011 introduced a Constitution Amendm- ent Bill in the Lok Sabha to pave the way for the introduction of Goods and Services Tax ( GST).

The states have sought a five year compensation mechanism from the Centre and demanded that it be included in the Bill.

Lack of consensus on compensation to states on revenue loss has delayed implementation of GST. The Goods and Services Tax aims at subsuming most of the indirect taxes at the central as well as state level.

As part of the roll out of Goods and Services Tax, the CST is being phased out and has been reduced to two per cent from four per cent. The central government collects CST and distributes it among states.