As the GST Council readies to meet again on Friday, Centre and states will be required to walk the extra mile to sort out issues like list of exemptions, framework for draft rules and industry incentives.
If the current VAT rates across states is anything to go by, a possible move by the GST Council to peg the standard GST rate at around 18% could translate into at least nine states potentially losing out revenues.
GST Bill is now slated to head back to Lok Sabha for the ratification of amendments moved in the Upper House, followed by the next crucial step — a ratification of the Bill by a minimum of 15 states in their respective assemblies.
The finance ministry, which had allotted Rs 38,500 crore in its 2016-17 Budget for the scheme, is set to concede to much of the Ministry of Rural Development’s (MoRD) demand for another Rs 15,000 crore.
ILO Director-General Guy Ryder, who was on a five-day visit to India, predicts that despite the government redoubling its manufacturing push, the sector in India is unlikely to end up on the lines of the Chinese one.