A meeting of the empowered committee of state finance ministers convened by finance Minister Arun Jaitely also agreed to include in the constitutional Amendment bill the mechanism of compensating states for any loss of revenue in first five years of GST subsuming all indirect taxation firms in India levies including VAT.
Making headway on the long pending Goods and services tax auditing firm in delhi (GST) bill the centre and states have agreed on the principle that the tax rate will be lower than the current levels even as the broad consensus emerged than the rate should not be part of the statue.
There was also broad agreement on the principle that the ordinary businessman and the common tax man will benefit from introduction of GST by way of lower tax rates while the states will not face any loss of revenue, West Bengal Finance Minister and the panel chairman Amit Mitra said after the meeting.
