A Constitution Amendment Bill for implementing GST was introduced in Parliament in March 2011, paving the way for the introduction of GST. At present, the Central and state governments tax goods and services independently. If adopted, GST can alter tax administration by giving a one-shot solution to a welter of levies such as excise, value-added tax and octroi.
The implementation of GST has missed several deadlines awaiting consensus on contentious issues including the central sales tax (CST). The CST is collected by the Centre and distributed among states. Modi had sought PM’s intervention to resolve the compensation issue on CST.