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The empowered committee
under the chairmanship of Dr. Asim Das Gupta has released its first discussion
paper on Goods and service tax on 10th Nov. 2010 and at that time it appeared
that centre and states are agree on major and basics of the Dual Goods and
service tax since Finance Minister Mr. Pranab Mukharjee was also present at the
time of release of discussion paper and even after lapse of first 15 days no
negative comments were received from the centre but thereafter news reports
coming out that centre has its own plans with respect to rate of tax, the
threshold limit under CGST , purchase tax and taxing the alcohol products.
The report of task force of 13th Finance commission has also made it clear that
there are difference between the states and centre and further the report of
task force is considered to a released document to show the intention of the
centre that sole authority to decide the basics is not the EC and thus
undermining the importance of the EC.
The comments of department of revenue also confirm the fact that though again
and again news reports are coming about the prospective date of introduction of
Goods and service tax but still there are basics on which states and centre have
the opinion difference.
These comments shows that though there is an agreement on Dual format of GST,
common base of taxation , restriction on cross utilization ITC between SGST and
CGST , uniform procedure for collection of tax, dual administration of the GST,
tax on imports, zero rating of exports and basics of new and innovative IGST
model .
The basic difference are dual rate of tax- state are of the opinion that there
should be dual rate of taxation- a lower rate for essentials and standard rate
for others but centre is advocating for the single rate.
The states have suggested a threshold limit of Rs. 1.50 crore for CGST but
centre has the plan to make it equivalent to the SGST which is around Rs.10
Lakhs only. The states has suggested 0.50% composition fees for all the small
dealers having turnover up to Rs. 50 Lakhs but it appears that centre is of the
opinion that a further composition fees of 0.50% to be imposed in lieu of CGST.
The comments of DOR also suggests that besides taxes suggested by the discussion
paper , electricity duty , Octroi , purchase tax and taxes imposed by local
authorities should also be subsumed under GST.
Source:
MyNews.in, India, dated
26/01/2010
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