The discord between the Centre and states over the contours of the Goods and Services Tax (GST) seems hard to be reconciled. The Centre, which has agreed to provide constitutionally-guaranteed GST compensation and keep petroleum products out of the proposed comprehensive indirect tax in the initial few years to address the states’ concerns, is peeved at their new demand that the combined GST rate should be above the revenue neutral rate (RNR) of 27% projected by a designated think tank for most transactions.

Source - http://www.financialexpress.com