AGARTALA, July 3 (TIWN): Tripura today sought full Goods and Services compensation for at least five years from the date of implementation of GST as given to the states in VAT regime.Finance Minister Bhanulal Saha on Thursday placed the demand of appropriate compensation at par with the projected growth in VAT revenues at a meeting of Union Finance Minister Arun Jaitley with Finance Ministers of states held at Vigyan Bhawan in New Delhi today.

Saha proposed that the latest fiscal position should be reviewed after 2-3 years of the commencement of GST and after 5 years. The same might be held depending on the experience of GST implementation, he said adding that compensation should be ensured for Special Category States like Tripura.

An Empowered Committee meeting of the union cabinet held on November 18 and November 19, 2013 recommended to keep petrol and petroleum products and alcoholic liquor for human consumption outside the GST cover. In keeping with the resolution, Tripura Finance Minister Bhanulal Saha today reiterated that petrol, petroleum products, tobacco and tobacco products and kerosene oil sold through the PDS should be kept outside the cover of the GST in addition to alcoholic beverages.

Petrol, diesel, aviation turbine fuel and liquor are currently kept outside the cover of Value Added Tax (VAT).

In the latest proposed draft Constitution Amendment Bill, the central government kept a provision for having 3/4th of the weightage vote of the members present and voting for taking a decision in the GST council retaining 1.3rd weightage on the vote of the central government and 2/3rd weightage on the votes of all state governments taken together.

Tripura today suggested that 1/4th weightage should be maintained for Tripura, 1/4th weightage for the centre with 3/4th weightage for all of the state governments put together.

Saha further proposed that the rate of taxes on products in GST should be in specific bands only in line with the current VAT rate. He added that the threshold limit of GST for dealers doing business of purchase and sale within the state should be limited at Rs. 5 lakhs. The limit should continue to be 'zero' for other dealers failing which the government is apprehending serious loss of revenues, he added.