Meanwhile, the S&P BSE Sensex was currently up 100.77 points or 0.36% at 28,125.10

According to media reports, the Union Cabinet yesterday, 27 July 2016, approved amendments to the constitutional amendment bill on Goods and Services Tax (GST). The government has reportedly accepted a key demand of Congress to remove a 1% tax on inter-state transactions in the GST regime. The government has also agreed the demand of the state governments of full compensation for revenue loss for five years. The original GST bill provided for a graded compensation of 100% for the first three years, then 75% and 50% for the next two years, respectively.

The GST bill is likely to be moved in the Rajya Sabha next week. The Rajya Sabha has already allotted five hours for discussion on the GST bill, according to media reports. The GST bill, which has been approved by the Lok Sabha is pending in the Rajya Sabha due to Opposition resistance. The BJP led National Democratic Alliance (NDA) government at the centre has a comfortable majority in the LoK Sabha. However, the coalition does not enjoy a majority in the Rajya Sabha. A constitutional amendment bill requires at least 50% attendance and support of two-third of those present and voting in the house. For the GST bill to become a law, the bill also needs to be approved by half the state assemblies after its passage in the parliament.

GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. The GST seeks to create a seamless national market in the country by replacing plethora of state taxes and central taxes by one tax. The month-long monsoon session of the parliament will conclude on 12 August 2016.