Council clears draft law for compensating states' loss

Council clears draft law for compensating states' loss

GST Council today cleared the draft Compensation Law aimed at compensating states for the loss of revenue from GST implementation.

"One major meeting of GST Council is required to give approval to putting goods and services in different tax slabs", added Jaitley.

It is essential that enabling laws for GST are passed in second half of Budget Session to ensure its rollout from July 1.

He added that legally vetted drafts for all important bills would be presented to the council next month, while states are expected to get the final draft of CGST and SGST on March 1.

According to a person familiar with the matter, a separate draft law for Union Territories would be drafted along the lines of the State GST Bill.

The Centre and states failed to agree on the details of two bills crucial to triggering a Goods and Services Tax (GST) on Saturday, which possibly clouds the roll out of the country's biggest tax reform from July.

"It will not come before the Council anymore and will be taken to the Cabinet for approval and will make efforts to pass it in the second leg of Budget session (beginning March 9)", he said. "After incorporating these clarifications, on March 4-5 meeting in Delhi, these laws will be cleared", Jaitley said.

While there was apprehension that the Council may approve a tough anti-profiteering clause in the GST bills, Jaitley said: "We did not discuss the anti-profiteering clause in this GST Council meeting".

Also read: GST: CAG wants power to seek "any information" for audits. Finance Ministers of various states attended the meeting. The last meeting of the council was held on January 16 wherein the states were allowed to tweak taxpayer division after consulting Centre. A sub-committee of the GST Council's made up of central and state officials had discussed the draft of Friday.