Indian GST update
- Jul 8, 2016 | Richard Asquith
Discussions between the governing BJP and opposition Congress parties are continuing as both sides look to solve the last issues to secure an implementation of the new indirect tax in 2017.
Congress has blocked the progress of the Constitutional Amendment Bill, which would introduce GST to replace VAT, CENVAT, Service Tax and others. The party is looking for an 18% cap on the proposed standard GST rate. This would include the removal of an additional 1% levy to be paid to states that may lose revenues. The party also wants clarification on the disputes procedures between Indian states set to lose or win with the new regime.
A number of Congress states have now backed the Bill, meaning the party is losing support in Parliament.