Interests of states taken care of as GST Bill is introduced in Lok Sabha, says Arun Jaitley

The government introduced the 122nd Constitution Amendment Bill for Goods and Services Tax (GST) in the Lok Sabha on Friday saying it will not rush through the legislation and address concerns of all the states.

The Bill, a key item on the government's economic agenda, aims to create a single tax for goods and services across the country, raise revenues and boost growth.

"I have discussed the Bill with various state finance ministers. We will not rush through the Bill and address concerns of all members," Union finance minister Arun Jaitley said while introducing the Bill.

"We have made sure that no state will lose a rupee of revenue. It will be a win-win situation." The Bill will be taken up in the next Session of Parliament, Jaitley said adding that he will be open to all suggestions "till the very last minute".

Mallikarjun Kharge, Congress' leader in the Lok Sabha, objected as the Bill was not listed in the House business for the day. "This is a wrong practice," he told deputy Speaker M Thambidurai.

Jaitley argued that points of difference had been hammered out in the various meetings he had with state finance ministers over the past days. States who will forego octroi due to GST would be compensated adequately by the Centre, Jaitley said.

States would be compensated on account of Central sales tax and the first instalment would be made before March 31 next year.

Seeking to allay apprehensions of states, Jaitley, who spoke on the Bill in Rajya Sabha too. Biju Janata Dal MP Bhartruhari Mahtab questioned the "hurry" in introducing the Bill and wanted the crucial legislation to be sent to the Standing Committee.

"Let there be no tax on tax. If you have multiple taxation imposed, the burden and procedural complication increase. One legitimate fear is there and therefore I am not going to rush through with this though the Standing Committee has cleared it," Jaitley said.