New Delhi, Dec 19: The government tabled the much anticipated goods and services tax (GST) amendment Bill in the Lok Sabha on Friday that provides a major taxation reform in the country.
While introducing the mega tax reform in the House, finance minister Arun Jaitley said that the government has considered the concerns raised by the state governments by offering to compensate the states for any loss of revenues following the implementation of the GST.
"The government has added several safeguards to GST constitutional amendment Bill and will compensate states losses initially," he said.
Clarifying about the advantages of the GST, the minister said that both the Centre and States will get benefits from its rollout. He made it clear that the government is open to all suggestions regarding the GST reform.
The Cabinet this week had approved the Constitution Amendment Bill on Goods and Services Tax (GST) to rationalise the state and central indirect taxes into a harmonised goods and services tax.
Making its position clear on the issue, the Trinamool Congress (TMC) said that it was not against the concept but provided the states were compensated adequately. "Trinamool Congress has a very clear position on this. The Trinamool Congress is not at all against GST, we are for GST. All we ask is an adequate compensation for states because the states lost out a lot on the (Central Sales Taxes) CST. So, that money should be given back over a period of time to the states, otherwise we are very much on board with GST," told TMC Rajya Sabha MP Derek O Brien to ANI.
The investors and manufacturers have been long advocating for the GST as a way to simplify taxes in the country. The Bill was last introduced in the lower house in 2011 by the UPA government, but could not be cleared.