GST - State FMs agree to Negative List
THE Empowered Committee of State's Finance Ministers on GST, meeting in Bhopal on Monday agreed in principle to the concept of services tax based on the 'negative list' and suggested that the Centre could prepare such a list, which would help, widen the tax base. But there is a catch - the committee suggested that all items mentioned in the negative list should be liable to be taxed by the States.
It seems the States have estimated a loss of Rs 19,000 crore in revenues after the Central Sales Tax was reduced (as part of the move towards GST regime). But so far, the Centre has released only Rs 6,393 crore to 13 states by way of compensation.
The State Finance Ministers are scheduled to have a meeting with the Union Finance Minister on January 18.