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The
panel on GST rates will consist of central, state
government officials and advisors to the union finance
minister and members of the Empowered Committee. It will
suggest the rate structure by January 24.
After
the rates are suggested, the Empowered Committee will send
its views along with the draft report to the Union Finance
Minister P Chidambaram by January-end. The dual GST
structure is proposed to be implemented from April 1,
2010.
“It
is important to calculate rates exactly for central GST
and state GST for commodities as well as services,” said
Asim Dasgupta, West Bengal Finance Minister and chairman
of the Empowered Committee.
The
rates will be such that there will be no revenue loss to
the governments while bringing down the incidence of tax
under GST model, Dasgupta said.
In
each structure of the GST, there will be integration of as
many taxes on goods and services and there will be few
rates.
In
the second round of deliberations held on the GST report
today, the Empowered Committee introduced some
modifications in the draft. Dasgupta refused to divulge
the details on the changes.
However,
he said, there was no unanimity among states on bringing
non-value added tax items like petroleum products, tobacco
and liquor under GST model. States also conveyed that
certain taxes may not be subsumed immediately.
Besides
excise and service tax, the draft report has suggested
that the cess and surcharges levied by central and state
governments should also be subsumed under GST. It has also
recommended subsumuming purchase taxes levied by some
states under GST model.
After
the Centre gives its view, the report will be crystallized
and by early February, the GST roadmap report will be made
public.
After
feedback from all stakeholders including trade and
industry, the Empowered Committee also plans to bring out
a white paper on GST. All the VAT-implementing states saw
24 per cent revenue growth during April-November.
Source
:
The Business
Standard, India, dated 21/12/2007
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