Cabinet approves major changes to GST Bill, drops 1% Additional Tax

The Union Cabinet headed by Prime Minister Narendra Modi on Wednesday cleared two key changes in the GST Constitutional Amendment Bill.

The Cabinet dropped 1 per cent additional tax and introduced a guarantee of 100 per cent compensation to States for five years for any revenue loss in proposed indirect tax regime.

The Goods and Services Tax (GST) Bill with the changes would come up in the Rajya Sabha this week. With this changes, the Union government is hopeful of passing the long-pending Bill in the ongoing monsoon session of Parliament.