The Central government has agreed to give in to demands made by states to facilitate the goods and services tax. Sources say petroleum products and entry tax could be kept out the ambit of the goods and services tax (GST).
This comes after state finance ministers met Arun Jaitley in the capital today. States stood firm over their demands. All States, except one, rejected the Centre's latest draft Constitutional Amendment Bill on GST which was sent to the states on December 4. The rejection by States is on three key issues - petroleum, entry tax and compensation mechanism for GST.
Abdul Rahim Rather, chairman of the State FM's panel on GST had said that the States have rejected the Centre's latest draft Constitutional Amendment Bill for GS and State governments want their original demands on Constitutional Bill to be met by the Centre and will communicate their dissent to the FM.
After this, the Central government has agreed to rework the bill.
CNBC-TV18 learns from sources that petroleum products and entry tax will be left out of GST and the compensation mechanism could be part of the Constitutional Amendment. These are the three sticky issues that were hurdles to the GST.
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