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The Cabinet is claimed to have cleared changes in the GST Constitutional Amendment Bill, dropping one-per cent manufacturing tax and guaranteeing states a compensation for any revenue loss in the first five years of rollout of the proposed indirect tax regime. Head by prime minister Narendra Modi, the Cabinet, claim industry sources, have decided to include a clause in the Constitutional Amendment Bill that any dispute between states and the Centre will be adjudicated by the GST Council, which will have representation from both the Centre and states. With states on board and the Cabinet approving the amendments, the government is hopeful of the passage of long-pending Goods and Services Tax (GST) Bill in the current monsoon session of the parliament.

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