The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday cleared the long-pending constitutional amendment bill on Goods and Services Tax (GST) paving the way for its introduction in the Lok Sabha in the winter session.
In order to reverse the sentiment of the business community, the government expedited the process of consensus building on the bill with states. Finance Minister Arun Jaitley promised the states to compensate their entire revenue losses for the next three years and also agreed on the most contentious demand of leaving petroleum products in the hands of states.
After the deal was struck between the Union finance minister and his state counterparts on Monday night, the prime minister along with his other Cabinet colleagues discussed the finer points of the bill and the strategy to push the bill in the Lok Sabha amid logjam and protests over various issues. GST Bill, the most important indirect tax reform since independence, is expected to contribute to India’s growth story dramatically.
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