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The first
discussion paper on Goods and Services Tax (GST) would
be submitted to Finance Minister Pranab Mukherjee by the
Empowered Committee of State Finance Ministers on
November 10 and then placed for public comments.
The preparations for the implementation of the direct
tax regime is on, even though there could be delay in
its introduction from scheduled date of 1 April, 2010.
Even Mukherjee had recently said, “I am trying to stick
to the time schedule, but I will not be surprised if
there is slippage of a few months.”
When asked about the finance minister’s comments on the
issue, empowered committee chairman Asim Dasgupta had
said, “Our collective target is 1 April, 2010, and on
this we will have discussions with the Finance
Minister.”
Some states like Madhya Pradesh and Gujarat have
suggested that there should not be any hasty
implementation of GST, which would do away with most of
the indirect taxes at the Centre and states.
“There is a case for it getting delayed. There are many
issues which have to be solved, many complications which
are also there,” Madhya Pradesh Finance Minister
Raghavji said after a meeting of the Empowered Committee
on GST.
Raghavji said there should not be a hurry to implement
GST as this is a radical reform in the tax structure.
The Empowered Committee has already constituted a
working group on suggesting Constitutional amendments
and model GST Act.
GST would scrap most of the indirect taxes at the Centre
like excise and service tax and others at the states
like VAT, octroi and others.
However, the discussion paper would deal with the
overall structure of the tax regime and may not talk
about the rates.
Infact, sources said there has been some consensus at
the states level on the structure of the tax regime,
while there are differences over the rates.
The discussion paper may not even mention the goods and
services to be covered under the new tax, the sources
said.
They said this issues would be proposed at later stage.
In fact, the rates would be decided towards the end,
after a decision is reached on the coverage of the tax.
States have already decided that there would be two main
rates of GST, besides a special rate on precious metals.
The Centre is yet to take a call on the issue.
Source
:
Livemint, dated 01/11/2009 |
