The committee will eventually evolve into the GST council for ‘dispute resolution’ on ratification of the Constitution amendment by fifty per cent of state legislatures and passage of three GST laws: central GST, state GST and inter-state GST. He pointed to the lack of consensus on the GST rate in the empowered committee of finance ministers of states. They are credited with the view that there’s no clarity yet on the GST rate that, as per the understanding they reached with the government, has to be ring-fenced. The revenue loss between the aggregate of existing state and central taxes and the GST cap could run into several lakh crore rupees. But subordinate GST legislations that will “legally ring-fence” the taxation rate might be delayed until Parliament’s winter session.

Source: Hindustan Times August 01, 2016 13:18 UTC