Union Cabinet clears amendments in GST Bill

27 July, New Delhi

Union Cabinet today approved amendment in Goods and Services Tax Bill and dropped one percent additional tax on inter-state sales as proposed in the current bill.

Sources said, the Cabinet also agreed to include the mechanism of compensating states for all loss of revenue for five years in the bill after the roll out of the new indirect tax regime.

The Bill in its present form provides 100 per cent compensation to states by the Centre for first three years, 75 per cent for fourth year and 50 per cent for the fifth year.

Union Cabinet has also approved setting up of new All India Institute of Medical Sciences in Bhatinda, Punjab. It will have 750 beds capacity and incur an expenditure of 925 crore rupees. The super specialty hospital will be built under the Pradhan Mantri Swasthya Suraksha Yojana.

The Cabinet also approved to raise foreign shareholding limit from 5 percent to 15 percent in Indian Stock Exchanges.