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GST dispute resolution system a temporary measure

Committee likely to be set up to work out structure of compensation to states

Image via Shutterstock
Image via Shutterstock

The contentious dispute resolution mechanism under the proposed goods and services tax (GST) regime would not be a permanent structure. A temporary set-up is envisaged to address differences among or between states, and with the Centre, sources said. A committee is also likely to be set up on the modalities of the proposed full compensation to states for five years, if they earn less revenues under the GST regime compared to the existing tax system. The GST Council, whose decisions might lead to these disputes, will work out a mechanism for redressal of disputes.  The ...