GST deadlock persists as state FMs stick to their demands

The State Finance Minister's panel is sticking to its guns on demands made for the Constitutional Amendment Bill. States have yet to hear from the Centre on their demands which include keeping petroleum products out of GST, and a five year compensation mechanism in the Constitutional Bill.

States also want the threshold limit for GST levy to be kept at Rs 10 lakh while the limit for dual control of GST is being recommended at Rs 1.5 crore, along with legislative powers for states.

The states are still very firm on the fact that items like alcohol, tobacco, petroleum products should be left out of the GST chain. Second issue is the compensation structure for GST. They are saying a five year compensation structure should be given by the Centre and a commitment should be made in the Constitutional Amendment Bill.

The Centre has to yet get back on both of these issues unless that happens one really cannot say that there is a consensus and the GST role out is actually going to go ahead.