A panel of state finance ministers cleared a bill that will compensate states for any revenue lost as a new nationwide goods and services tax is introduced in July.
The government will now present the compensation bill in the second phase of the parliamentâ€™s budget session, Finance Minister Arun Jaitley told reporters in the northwestern city of Udaipur on Saturday. The next meeting of the state ministersâ€™ panel on March 4-5 will also discuss other laws that have to be passed before the July deadline, he said.
Lawmakers need to approve three bills to meet the governmentâ€™s deadline of implementing the goods and services tax on July 1, and also frame rules about rates for various products and services.
The GST will replace a web of levies that delay trade traffic, increase costs and discourage compliance.