Traders pin hopes on Budget on GST

Confederation of All India Traders general secretary Praveen Khandelwal said, "The draft of GST was to be issued in 2007. Now, with a stable government in place at the Centre, the process of implementation of GST may move fast."

Tax expert and chartered accountant Amarnath Singla said, "Finance minister Pranab Mukherjee may announce plans about
GST in the Budget to be presented in July."

On tax rates, he said that GST can be implemented in four slabs. These could be zero per cent, 4 per cent, 20 per cent and a uniform rate of 15-16 per cent.

Assocham president Sajjan Jindal said, "We have asked the government to implement GST as soon as possible, as it is big step towards tax reforms. But, this is a complex tax system and its complete implementation may take time."

Northern India Chartered Accountant Association president RK Gaud said, "While implementing GST, lessons should be taken from difficulties faced in imposing VAT. Though revenue has been increased after the imposition of VAT, there were many shortcomings in the draft of VAT. So, everybody is looking at the GST draft."

He said VAT rates are different in states and even the definition of goods varies from state to state.

Singla said GST would replace excise duty, service tax at the Centre, and VAT at state-level, but a complete picture will emerge when the GST draft will be released.

Khandelwal said the draft should be released soon and a task force, including government officials and industry experts, should be formed for the purpose.