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"Because of the
difficulties connected with the passing of the required constitutional amendment
bill in the budget session, it will not be practical to introduce GST on April
1, 2010," Empowered Committee of States Finance Ministers Chairman Asim Dasgpta
told reporters here.
The Goods and Services
Tax (GST) will do away with most of the indirect taxes at the Centre like excise
and service tax and at the states like VAT and octroi. The tax was scheduled to
be implemented from April 1 this year.
However, due to lack of
convergence among the states regarding the structure and rated of GST, the
introduction has been delayed.
"The new date for
introduction the Union Finance Minister suggested would be settled in the month
of April," Dasgupta said.
With regard to Central
Sales Tax compensation, Dasgupta said that the finance minister has agreed to
give Rs 9,676 crore, or about 68 per cent of the total revenue loss, to the
states.
CST, a levy on
inter-state transfer of goods was reduced to 2 per cent from 4 per cent with the
aim of removing it completely at the time of the introduction of GST.
Source: NDTV.com , India, dated
28/01/2010
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