Today, The cabinet gave green signal to GST constitutional Amendment bill.

The contoversial one percent manufacturing tax has been removed by the cabinet, which was one of the demands of the opposition, led by congress.

MS Mani, Senior Director - Indirect Tax, Deloitte Haskins & Sells LLP, said “It is indeed commendable that the Cabinet has taken up the GST matter within a day of the meeting of the Empowered Committee of state finance ministers. This depicts the resolve and commitment of the Government to move ahead on GST".

The Cabinet-approved Bill now provides that the Centre will give 100 percent compensation to states for first three years, 75 percent and 50 percent for the next two years.

With the Centre accepting the changes, the NDA government has indeed made a giant step forward to bring on board all the state governments.

The Bill, with the changes, is expected to be taken up in the Rajya Sabha as early as this week, but certainly by next week.

Once the Rajya Sabha approves the legislation, the amended Bill will have to go back to the Lok Sabha again for approval.