NEW DELHI: The Bill to amend the Constitution, paving the way for the biggest, long-pending and much awaited indirect tax reform is all set to be approved by the Rajya Sabha on Wednesday. Union Finance Minister Arun Jaitley will move four amendments to the Constitution (122nd Amendment) Bill, meant for the roll out of the Goods & Services Tax (GST) in the Rajya Sabha on Wednesday, when it is taken up for consideration and passage.

The planned amendments will seek to withdraw the 1 per cent additional tax proposed earlier, guarantee the States full compensation over a period of five years for any losses from the shift to the new tax and propose a new mechanism for dispute resolution, in which the States will have greater say.

The fourth amendment to the Bill — passed by the Lok Sabha in May 2015 but stuck in the Rajya Sabha, where the ruling BJP does not have a majority — will be to introduce a fresh assurance that the GST rate will be governed by the following basic principle: it will neither lead to revenue losses for the States nor will it hurt the consumers.

Bureau Report