After the deliberations, discussions and meetings the scene is set for meeting most of the demands of GST Bill proposed by the BJP Government. In the wake co-operation from the States, Congress remains isolated. It remains to be seen that whether the party will still insist on 18 per cent cap on GST being incorporated in the Constitution. GST dispute resolution body will be set up but not headed by a judge which Congress wants in its demand. Guarantee to compensate states for any revenue loss in the first five years of GST roll out is the best option as states would like to grab the maximum benefit during this cushioning period. The drops proposed include 1 per cent inter-state tax over and above GST rate and thus the Government is making every attempt to rescue act for the Bill to pass through Rajya Sabha. The Modi Government has decided to bend backwards and make significant changes in the GST Constitutional Amendment Bill that will help bring the Congress on board and serve to address the concerns of the state. Meeting most of the demands is the success of Modi Government to clear the Bill in the upper house.
Jayanthy S. Maniam
(The views expressed by the author in the article are his/her own.)