No decision on GST rates yet, council to meet again

New Delhi, October 20: The second day meeting of the GST Council, the decision making body, ended abruptly here on Wednesday, without reaching a decision on the GST tax structure. The council would meet again on November 3 and 4 to finalise the tax structure and other issues.

The Centre held a two-day council meeting with all states at Delhi. All the states agreed for a five- slab structure of five types of taxes on the first day, but they deferred over the goods and services that should be included in this tax slab.

The centre proposed the highest tax should be 26 per cent and imposition of cess over ultra-luxury items, luxury cars and other luxury products. A few states strongly opposed this proposal. The Centre was keen on implementing GST from April 1, 2017.

Hence decided to finalise tax slabs and rate structure during the two-day meeting. But the states have demanded tax structure which would not burden the common people. Further the states demanded that the Centre should compensate the loss incurred by the states by implementing the GST.

The compensation should be paid for every three months, they suggested. AP Finance Minister Etala Rajender suggested considering 14 per cent income growth in the formula for compensation. All the states agreed to Etala?s suggestion.

State Assembly meetings would be conducted in December this year or in next January for GST bills ratification. Meanwhile, the Centre is considering introducing the GST bill in the parliament sessions in November.