House panel asks for study on GST impact

A 2 per cent jump in GDP would be significant and could even pull the economy from the current slowdown. We have called for a detailed study on it, a member of the committee said.

It could add almost Rs 2 lakh crore to the economy. We want to know if this is really possible, said another member of the committee,which is led by former finance minister Yashwant Sinha.

Sources said that the Standing Committee also questioned the finance ministry over the proposed Articles 279 A and B on the GST Council and the GST dispute settlement authority respectively. The two issues have also raised concerns amongst many state governments who feel that it could impact their autonomy.

The panel has also cautioned the ministry to go slow in implementing the tax regime,saying that it took nearly two decades for the UK and Brazil to rollout GST.

The panel has called for another round of meetings with finance ministry officials on June 15,which will also be attended by Empowered Committee of state finance ministers and deputy chief minister of Bihar Sushil Modi . The ministry was hopeful that Fridays meeting would constitute the panels last discussion on the Bill before it finalises its recommendations. But sources said that it will try to submit its report to Parliament before the Monsoon Session.

Finance ministry officials,including finance secretary RS Gujral and chairman Central Board of Direct Taxes SK Goel attended the meeting and made a presentation on GST. Former EC chairman Asim Dasgupta also attended the meeting.

We called him as an expert and interacted with him. He had prepared the first paper on GST, a member said.