Rev Dept may send GST draft to Law Min next week: Sources  

In a significant step towards implementation of the Goods and Services Tax (GST), the Finance Ministry today finalized the draft constitutional amendment that it had been discussing over the last six months, sources told CNBC-TV18.

The draft will be sent to the Law Ministry next week and then for Presidential reference. Amendment of the Constitution has been of the key obstacles on the road to GST introduction.

The finalized draft suggests three alternatives. First, to introduce a fourth list in the Constitution in addition to the Union, state, and concurrent lists. The fourth list will specify items to be taxed under GST.

The second is to amend Article 246 and the third is taxation by agreement. Under this, the Centre and states will sign an agreement to set up a GST council.

Source: Moneycontrol.com, India, dated 16/04/2010