GST revenue compensation protects states against transitional revenue loss, including temporary additional tax and tapering central support.
The Constitution Amendment Bill on GST provides transitional fiscal measures to ensure States suffer no revenue loss on implementation: a temporary additional non vatable tax on inter State supplies of goods assigned to originating States for a limited period, and central compensation to States on a tapering basis during the transition, with the GST Council to recommend duration and related modalities.

Goods and Services Tax concurrent taxing power establishes dual CGST/SGST and a GST Council to harmonise rates and rules.
The Bill confers concurrent power on Parliament and State Legislatures to levy Goods and Services Tax, creates constitutional provisions-Article 246A, Article 269A and Article 279A-establishing the levy and apportionment rules for intra and inter State supplies and constituting a Goods and Services Tax Council to recommend rates, exemptions, place of supply principles and dispute resolution. It prescribes a dual GST structure (CGST and SGST) with IGST for inter State supplies, seamless input tax credit across States, subsumption of specified Central and State indirect taxes, a temporary additional inter state tax assigned to origin States, and compensation to States for revenue loss for a limited period.

Goods and Services Tax reform: single tax on value addition with seamless input tax credit to boost compliance and market integration.
The Goods and Service Tax (GST) is designed as a single tax on value addition with seamless transferability of input tax credit across the value chain, incentivizing compliance. The reform aims to harmonise indirect taxes, remove inter-state check-posts, implement robust IT systems, broaden the tax base, reduce production costs, and foster a common national market to improve competitiveness.

Goods and Services Tax reforms advance with draft constitutional amendment and state taxation issues poised for resolution.
Goods and Services Tax and an Insurance Amendment Bill are imminent reforms; the Insurance Amendment Bill is expected in the forthcoming parliamentary session and the draft constitutional amendment on GST will be apprised to the Empowered Committee of State Finance Ministers before introduction in Parliament. State concerns remain on taxation of liquor and petroleum and on excluding entry tax and octroi from GST; these issues are being negotiated with states and the parliamentary select committee. Concurrent measures include proposed procedural changes to the Land Acquisition framework, expanded foreign direct investment in infrastructure sectors, and an ambitious disinvestment programme.

Goods and Services Tax reform to unify indirect taxation and remove cascading taxes, enabling a transition to a national GST.
Implementation of a Goods and Services Tax is proposed to establish a national market, eliminate cascading taxes, and align treatment of cross-border trade, with an initial Central GST to build IT infrastructure and reduce transition risk. A Direct Tax Code is urged as a modern income tax replacement to simplify the tax base, remove special cesses and exemptions that distort decisions, and lower compliance costs and litigation.