States form panel to suggest GST rates

The empowered committee of state finance ministers today constituted a panel to suggest the probable goods and service tax (GST) rates for central government and state governments.

The panel will consist of central, state government officials, advisors to the union finance minister and the empowered committee. It will suggest the rate structure by January 24.

"Once we get to know the GST rate structure, we will communicate our views to the union finance ministry," Asim Dasgupta, empowered committee chairman & West Bengal finance minister said.

In the deliberations held today on the GST roadmap report prepared by a joint working group, the empowered committee introduced some modifications.

The joint working group report, which suggested a dual GST model for India, was accepted by the empowered committee last month.

On inclusion of non-VAT items like petroleum products, tobacco and liquor under GST model, there were no unanimous position among states.

The modified GST report along with rate structure will be submitted to Finance Minister P Chidambaram by January-end 2008.

Source : Business Standard - Mumbai, Maharashtra, India, dated 20/12/2007