The consensus over the major roadblock in GST rollout comes a day after resolution was reached on the contentious issue of CST compensation with the states agreeing to accept a lower package of Rs 34,000 crore.
"The deadlock over GST issue is now over. It is historic as there was a general consensus for introduction of GST," Empowered Committee of State Finance Ministers Chaired by Bihar's deputy chief minister Sushil Kumar Modi told reporters here.
At the two-day meeting of state finance ministers, Modi said that it was agreed that instead of a single rate for GST there would be a floor rate with a band, giving freedom to states to fix their own rates.
With regard to another contentious issue of Dispute Settlement Authority (DSA) in the GST Bill, Modi said that Centre has also agreed to do away with the provision. Instead, he added, there would be a GST Council to resolve the disputes.
States had serious reservations on creation of a Dispute Settlement Authority (DSA) in the Constitution itself to prevent deviations in the structure, as they feel disputes can be resolved through consensus rather than a DSA with such level of authority.
The DSA, as proposed in the Bill, was to deal with grievances of the Centre and the states with regard to GST. The body would consist of a chairperson and two other members. (MORE)
