Delay in GST likely; decision after 2014 polls

The Parliament's Standing Committee on Goods and Services Tax (GST), headed by Yashwant Sinha, sent back its key suggestions to be incorporated in the bill. However, its enactment may be delayed as it implies repeat of the exercise, which may leave the decision with the next government, reports CNBC-TV18's Siddharth Zarabi.

Also read: Yashwant Sinha panel seeks complete overhaul of GST Bill The 115th constitutional amendment bill for introducing Goods and Services Tax (GST) included suggestions such as not specifying in writing, the rate or the exemptions that should be left to subordinate legislation or notification route. It also asked for an important local level tax; entry tax to be subsumed within the GST and should be left to the states to collect. Along with these, it pitched for the European model, a floor and a ceiling band rate for GST where states should be allowed the choice to enter into GST just like it was provided in the Value Added Tax (VAT). The finance ministry will now study the report. It had already been working on redrafting that bill over the past few months. In the future, a fresh version of this bill will incorporate the suggestions from the parliamentary standing panel. as a result, the bill will go back to the parliamentary standing committee. It all adds up to the fact that this government is certainly not going to be able to usher in. it will be left to the new government to push through GST, but then the question is will there be a stable government.