AT present the question is not about whether GST will be introduced in India rather its about whether compromised GST will come into force or not. State’s key demands to keep petroleum products and entry tax out of GST reforms and to compensate them for loss in their revenue are big issues on which centre needs to decide upon.
Discussion between centre and state created deadlock last week over entry tax and VAT but in meeting on Monday Centre has admitted two key demands of the states under new indirect tax regime , for keeping petroleum products outside the preview of new indirect tax reforms in return for state agreeing to entry tax being subsumed under GST and for compensating the states for their loss of revenue due to new system of levying the indirect taxes under GST. IT should be noted that petroleum products will be outside the preview of GST for initial few years only.
Now The Compromised Bill on a national goods and services tax (GST) is likely to be passed in the current session of Parliament subsuming all other indirect taxes such as excise duty, vat etc which will be effective from April 2016.