Government plans GST Bills as money Bills

Government this winter session of Parliament aims to bring GST Bill as Money bill so that the passage is faster if Introduced as Financial bill as it requires voting only in Lok Sabha which the Opposition especially Congress is against wherein BJP has clear majority. 

This GST Council comprising State Finance Ministers has approved four main slabs on the "Tax Rate" ranging from 5% to 28%.

The four tier/slabs GST rates are as follows...

Tier 1- 5%	Tier 2- 12%	Tier 3 - 18%	Tier 4 - 28%
Mass Consumption Products           Aam admi Products	Remaining Items that dosent fall under Tier I  and Tier 4	Remaining Items that dosent fall under Tier I  and Tier 4	Ultra Luxury Items,Tobacco and Luxury Cars

The above 4 slabs system will have prospect of less loss than single slab structure and it looks like temporary and can be withdrawn at any time as per NITI Aayog  the Govt. think tank.

Little Flashback 

Narrative is being built that as though the GST was the brainchild of P.Chidambaram but In 2000 Vajpayee Govt set up the "Empowered Committee of State Finance Ministers" to design GST model also overseeing IT back-up preparedness for its roll out. Was also instrumental in designing VAT.
  
Modi Govt has successfully managed to pass the Constitutional Amendment GST Bill, Kudos for Parliamentary Management. Subsequently Lok Sabha passed after Incorporating amendments made in the Rajya Sabha. 

Prime Minister Modi was magnanimous in saying the GST cannot be seen as a victory to the Party or to the Government but Victory to the Indian democracy and for all Indians.

The GST Bill however has to be ratified by at least 16 States within 30 days after passed in the Parliament


How Arun Jaitley Outmanoeuvre'd Chidambaram

Despite sustained efforts from P.Chidambaram making his debut in RS wanted an assurance from Arun Jaitley that GST bill will be brought in as a Financial bill and not as a Money Bill . Arun Jaitley cleverly did not take the bait by giving any such assurance knowing well that Congress may again try to subvert the Bill. 

Arun did not allow Chidambaram to spoil the consensus that the NDA had built in RS and managed to successfully push and pass the bill.

Apprehension raised by the Manufacturing State esp. Tamil Nadu has been addressed with amendments.

Demands from Manufacturing State's & Oppn	Govt. Stand
Scrapping of 1% Interstate tax	Scrapping of 1% tax and assurance to these States to Compensate for full 5 years for any Revenue loss on account of Implementation of GST.
Dispute Resolute Mechanism	Dispute Resolution Mechanism to be formed Empowered Committee comprising State Finance Ministers for endorsement of the resolution on Revenue Neutral Rate.
Cap on tax rate on constitution	Govt yet to decide on this