The Empowered Committee of the State Finance Ministers on Goods and Services Tax has decided to set up a sub-committee to study the Central government's revised recommendations to subsume liquor and petroleum products in Goods and Services Tax, the new head of the GST panel said on Thursday.
“Centre has proposed including both petroleum products and liquor under GST. We have decided to set up a committee to study these recommendations. The committee would be set in the next two days," said Abdul Rahim Rather, finance minister of Jammu and Kashmir.
Last month, the Parliamentary Standing Committee on Finance had recommended that GST should be made optional for states and must have a well-defined compensation system.
An official who was part of Thursday’s meeting said, "There was no consensus yet among the states on whether liquor and petroleum products should come under GST as it might impact the state revenues hugely."
"We will send the responses once the sub-committee looks into the reports and recommendations of various committees," he said. On the implementation date of GST, he said it was difficult to set a deadline.
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