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NDTV has learnt that the
Centre is likely to seek the Supreme Court's advice via a Presidential
reference.
In Centre's opinion, the SC advice on constitutional amendments to the GST will
lessen risk of litigation at a later stage.
Finance ministry will present alternatives to the SC for these constitutional
amendments.
Not just this the Centre will also create a GST Council headed by the finance
minister to decide on the GST rates and other key issues like changes in the GST
rates.
The formation of this GST Council will be part of the constitutional amendments
on GST.
However, the matter is still under discussion between the finance and the law
ministries.
“I think it is a good idea to get the SC nod. The constitutional amendments will
be far reaching,'' said Pratik Jain, executive director of KPMG.
As these talks are on, the Centre has thought of a couple of alternatives to
suggest the Supreme Court in its legal push for GST.
The first option talks about allowing Centre and states to levy and collect GST
via entries in Union and State lists.
The second option is to implement GST by creating a fourth list called the
Simultaneous List. And the third option would be to empower Union and States to
levy GST notwithstanding the Constitution. The fourth option could be Center and
states to enter into an agreement by amending Article 278 (A) to implement GST.
So, even while the Centre and states go to and fro on GST it might just be the
Supreme Court where the matter will rest in the coming days. And in such a
situation the GST roll out could be pushed beyond April 2011.
Source:
NDTV.com, India, dated
29/03/2010
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