Initially a Rs 55,000 crore GST compensation fund was proposed to be created by levying cess on demerit or sin goods and luxury items, but post demonetisation the compensation amount is expected to go up to Rs 90,000 crore as most states have seen revenue decline of up to 40 per cent, non-BJP ruled states claimed.
Also, coastal states pressed for rights to levy GST on trade of goods within 12 nautical miles offshore, holding up finalising of the draft law for levy of Integrated-GST (IGST) on inter-state trade.
At the eighth meeting of the all-powerful GST Council, TMC-ruled West Bengal, CPM-led Kerala and Congress-ruled Karnataka pressed for including area up to 12 nautical miles in the definition of states within IGST law, a standoff that led to chairman and Union Finance Minister Arun Jaitley agreeing to seek legal opinion on its Constitutional validity.
"We couldn't reach a consensus on a very important issue that relates to defining of a state. This is 12 nautical miles from the state. Can states charge GST from them or not? Right now states like Gujarat, Karnataka, Kerala, Maharashtra, West Bengal and Odisha are charging VAT or sales tax within 12 nautical miles. For eg when a ship is loaded with oil or products, the tax on that is charged by the states.
The Day 1 of the panel meeting did not take up the contentious issue of control of assesses which had been till now holding up roll out of Goods and Services Tax (GST) regime. The issue would be discussed on Wednesday.
While representatives of opposition-ruled states were unanimous in saying April 1 target date for rollout of the new regime is not possible, even BJP-ruled Gujarat said GST could become a reality from September.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
Get Breaking news, live coverage, and Latest News from India and around the world on NDTV.com. Catch all the Live TV action on NDTV 24x7 and NDTV India. Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.