Centre, states may opt for dual GST

The central and state governments are most likely to approve a dual goods and service tax (GST) in the country from April 1, 2010.

The joint working group on GST is understood to have recommended a central GST and state GST to the empowered committee of state finance ministers.

"The empowered committee will be meeting on November 28 or 29, and will receive the structural recommendations of the working group on GST," said Parthasarathi Shome, advisor to Finance Minister P Chidambaram.

"Let us hope we can have a central GST and state GST," he said at an international tax conference organised by Ficci here.

The GST rate is likely to be decided at a later date by the central government and state governments. Many experts say the combined rate of central and state GST could be in the range of 18-20%.

Source : Business Standard - Mumbai, Maharashtra, India, dated 19/11/2007