The writing is on the fall as GST gets the much needed fillip as Centre and States agree to fix rate and the stalemate may end soon. Congress party now has no option to soften its stand and may not object to ceiling inclusion in the Act. In a swift move the centre sought the co-operation of the states and agreed to keep the cap on Goods and Service Tax (GST) rate outside the ambit of Constitution. It is notable that protection is given to small business and it is a welcome move in the light of stiff opposition. Moreover the Government has agreed to compensate the revenue losses to states for the first five years. The new package will see that a modified constitutional amendment bill is going to come up to nullify loss if any. It is a sort of relief to the ruling party and the crucial bill may be passed in Rajya Sabha next week and the key tax reform will come into force at the earliest. Thus, the Congress is increasingly isolated as regional parties garner support for early passage of the bill. GST is finally getting state boost and we can see light at the end of the tunnel.
(The views expressed by the author in the article are his/her own.)z