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The Centre
has been holding regular discussions with states on GST,
which is to be implemented by April 1, 2010. Some states
were apprehensive that GST will do away with their
fiscal autonomy.
"We are almost having meetings on a daily basis...To
bring all states together and make them agree to GST was
a difficult task. Some states had apprehensions. The
process has made considerable progress," Central Board
of Excise and Customs (CBEC) Chairman V Sridhar today
said.
He said many states are protective about their autonomy
so far as taxes levied by them is concerned.
After the Empowered Group of state finance ministers met
on GST last week, Madhya Pradesh Finance Minister had
expressed apprehensions that the new tax system would
take away the states' rights to tinker with rates.
The GST will subsume the central indirect tax levies
like excise and service tax and a host of state taxes
like VAT, octroi and purchase tax.
The structure would be a dual structure--one at the
Centre and the other at the state-level.
States have already agreed to have two rates of taxes,
with one standard rate and the other lower rate for
essential goods. The rates, however, have yet not been
finalised.
Source
: The Business Standard, India, dated 25/09/2009
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