The center has rejected the new and revised model of Goods and Services Tax (GST), which was proposed by some of the states of the country. The center rejected the new proposal by saying that a constitutional amendment was not needed for altering in the proposed indirect tax regime.

Some of the states like Gujarat and Madhya Pradesh had suggested for an interim GST model by which the states could tax services and share the earnings with the center but the tax on the goods will remain in the current regime.

The center had floated two drafts on the Constitution Amendment Bill so far, the first one was rejected by the states as it proposed a GST council for which they alleged that the Union finance minister would have the full power on the taxation issues of the stats. The draft had proposed the changes in GST which could be brought in by two third of the majority.

Meanwhile the Madhya Pradesh government suggested that the states should tax all the goods up to the retail stage in their own state differently according to their need.