With an aim of introducing the nationwide goods and services tax (GST) by April 2016, the government will move the Constitution Amendment Bill in Parliament in the current session of Parliament even as the issue of compensation and revenue loss to manufacturing states, lacked consensus.
However, Finance Minister Arun Jaitley after a meeting with ministers of 18 states, underscored that the government will send a notice to Lok Sabha to soon take the bill for consideration even as Tamil Nadu struck a discordant note. Further, Jaitley also expressed optimism in April 1, 2016 target and underscored that a constitutional amendment was required to facilitate GST as states currently do not have powers to tax services, while the Centre cannot levy sales tax.
The crucial GST, which is expected to add 1-2% to the GDP by creating a national market for goods and removing distortions caused by multiple indirect taxes levied by the Centre, states and local bodies, was earlier supposed to be rolled out from April 1, 2010 but has been delayed due to resistance on the part of many states that feared a loss of revenue.