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"I am confident about the
competence and efficiency of our people who are engaged in the discussion with
the state governments to find an acceptable solution, so that we can arrive at a
decision as early as possible (on GST)," Finance Minister Pranab Mukherjee said
at the Central Excise Day here.
With states and the Centre differing over the structure of the proposed Goods
and Services Tax (GST), which will replace most of the indirect taxes at the
Centre and the state level, the deadline of April 1, 2010, for the new system
will most likely be missed.
Yesterday in the Rajya Sabha, Mukherjee had said the state finance ministers
have stated that GST cannot be implemented from April this year as envisaged.
Mukherjee would meet the state finance ministers in early April to discuss the
implementation of GST.
In his speech on Wednesday, the Finance Minister said, "There are problems
ahead, and it is naive to think of success without hurdles. Ours is a federation
and each state has a say about the different aspects of the GST model."
While the empowered committee of the state finance ministers has suggested two
main tax rates for goods, besides a special rate for precious metals and an
exemption list, the Centre wants only one rate for goods under GST.
The Finance Minister said GST is the most important reform in indirect tax
administration. He said constitution will be amended for the purpose of GST.
Under the present system, the Centre cannot impose sales tax and the states are
not allowed to impose services tax.
Under GST, both the Centre and the states will tax goods and services from
manufacturing to sales stage.
Source:
NDTV.com, India, dated
24/02/2010
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