States across the country have sought full compensation from the Centre for revenue loss that they would incur in the first five years of the implementation of the Goods and Service Tax (GST).
The State Finance Ministers Empowered Committee on GST, chaired by Kerala Finance Minister KM Mani, further informed that some states have also demanded the levy of an additional sales tax on tobacco products.
According to reports, the GST has been termed as the single biggest indirect tax reform since independence. It will subsume various levies including excise duty, service tax, entry tax and octroi.
The GST Bill has been referred to a Rajya Sabha Select Committee after the Lok Sabha cleared it during this year's Budget Session.
