Cabinet clears amendments in GST Bill, drops 1% additional tax on inter-state sales

| Updated: Jul 28, 2016 04:04 IST

New Delhi, July 27 (ANI): 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. According to reports, 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 and approved the revised cost estimate to over 3727 crore rupees for the National Automotive Testing and research and development Infrastructure Project (NATRIP). This approval ensures completion of the NATRIP projects for the establishment of the global test centres in India. The initiative will address the research and development requirements of the automotive industry, full-fledged testing and homologation centres. The NATRIP project is required to adopt global best practices to ensure road safety and environmental protection. The Cabinet also approved the Policy for award of waterfront and associated land to port dependent industries in major ports and its operationalization. The Policy will result in uniformity and transparency in the procedure for awarding captive facilities. It will enable optimal utilization of capacities in major ports and increase revenue to the Major Port Authority. The ambit of the Policy includes creation of new assets as well as utilization of currently unutilised existing assets such as vacant berths. The Policy will be applicable to all the Major Ports. Besides, the Cabinet has approved the amendment in relevant clauses of the Central Agricultural University Act (CAU), 1992 to include State of Nagaland under the jurisdiction of CAU, Imphal. After inclusion of Nagaland under jurisdiction of the Central Agricultural University, Imphal, the College of Veterinary Sciences in Nagaland will produce the much-needed professional manpower in the fields of animal husbandry, which will facilitate socio-economic growth in the region. The new college will help familiarize the farmers with new techniques, thereby contributing to the production and productivity of domestic animals in the State of Nagaland. (ANI)