States have also turned down the Centre’s proposal to subsume entry tax in GST.
The finance ministry had been hoping to table the Bill in the winter session of Parliament but with no resolution on the issue in sight before the general elections, the talks have almost hit deadlock.
States, which met in the national capital on Monday to consider the revised draft Constitution Amendment Bill prepared by the Centre, did not agree on the provisions regarding petroleum, alcohol and entry tax, as that might dent their revenue collections.
A final decision is expected to be taken at the next meeting of the empowered committee of state finance ministers in Meghalaya next month.
“Most states have opposed bringing petroleum products and liquor under the GST framework. Some are also opposed to subsuming entry tax in GST,” EC Chairman A R Rather told reporters.
Though states have been insisting it be left to local bodies to collect entry tax, they had earlier given their in-principle approval to keeping petroleum outside the Constitution Amendment Bill, a measure recommended by Parliament’s standing committee on finance.
The finance ministry had agreed to keep it outside the Bill but within GST.
A U-turn now might put the Centre in a fix.
The standing committee had also suggested including entry tax in GST.
Some states also suggested the Centre should not push GST before the general elections in 2014 and let the new government take a call on it.
“The term of the present Lok Sabha is expiring in May 2014.
"Therefore, in the interest of the federal democracy, the present Lok Sabha should leave such an important issue for decision by the next Lok Sabha,”
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