The finance ministry is redrafting the Constitution Amendment Bill to roll out a Goods and Services Tax (GST) from the next financial year, after states objected to the “proposed veto power” of the Union finance minister on state taxation issues.
“We are working on redrafting of the Constitution Amendment Bill on GST. The finance minister is likely to approve it soon,” a key finance ministry official said.
He further said the concerns of the states over the finance minister’s veto power would be addressed.
The proposed rollout of GST from the next financial year received a setback after states on Wednesday rejected the draft Constitution Amendment Bill in its present form, as it sought to provide veto powers to the Centre over indirect taxation matters pertaining to states.
“This proposed draft Constitution Amendment Bill related to GST in its present form is not acceptable to states... states, in general, have reservations about the Union finance minister having any veto power on state GST,” Empowered Committee of State Finance Ministers Chairman Asim Dasgupta had said.
Dasgupta had said states were against infringement of their financial autonomy and had certain reservations on the draft Bill’s provisions for the GST Council and the GST disputes authority.
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He said the Union finance minister, of course, would have an exclusive authority with respect to Central GST.
The states also feel the GST disputes authority should not find a place in the Constitution Amendment Bill and may be incorporated in GST legislation.