VAT panel to work out GST rates in a month

The panel of state finance ministers on Value-Added Tax today said it expects to work out within a month the rates at which the proposed Goods and Services Tax will be levied by the states and the Centre.

The Empowered Group of state finance ministers on VAT gave the task of determining the rates to a joint committee comprising state finance secretaries, commissioners of commercial taxes and concerned joint secretaries in Union Finance Ministry, panel chairman Asim Dasgupta told reporters.

Parthasarthy Shome, Advisor to the Finance Minister, and Empowered Committee member secretary Satish Chandra would also be part of the committee. "We have requested the committee to work out the rates within a month's time," Dasgupta said.

After the recommendation of this committee on the GST rates, and views of the state finance ministers, the model would be crystallized and the resultant report would be submitted to Finance Minister P Chidambaram. The VAT panel would then call a meeting of chambers of commerce and industry and trade associations and work out a draft on GST. This draft would be put on website for a public comment, Dasgupta said.

Pointing out that the GST rates would be "very few", he said," the whole idea is that revenue neutral (GST) rates will be not be too high at all," Dasgupta said.

GST is proposed to be introduced from April 1, 2010 to integrate all indirect taxes on goods and services at the state and the Central level. The VAT panel had last month accepted recommendation of a working group to have dual GST structure -- one at the state level and the other at the cZCZC PRI COM ECO GEN .NEWDEL DEL64 GST VAT panel to work out GST rates in a month New Delhi, Dec 20 (PTI) The panel of state finance ministers on Value-Added Tax today said it expects to work out within a month the rates at which the proposed Goods and Services Tax will be levied by the states and the Centre.

The Empowered Group of state finance ministers on VAT gave the task of determining the rates to a joint committee comprising state finance secretaries, commissioners of commercial taxes and concerned joint secretaries in Union Finance Ministry, panel chairman Asim Dasgupta told reporters.

Parthasarthy Shome, Advisor to the Finance Minister, and Empowered Committee member secretary Satish Chandra would also be part of the committee. "We have requested the committee to work out the rates within a month's time," Dasgupta said.

After the recommendation of this committee on the GST rates, and views of the state finance ministers, the model would be crystallized and the resultant report would be submitted to Finance Minister P Chidambaram. The VAT panel would then call a meeting of chambers of commerce and industry and trade associations and work out a draft on GST. This draft would be put on website for a public comment, Dasgupta said.

Pointing out that the GST rates would be "very few", he said," the whole idea is that revenue neutral (GST) rates will be not be too high at all," Dasgupta said.

GST is proposed to be introduced from April 1, 2010 to integrate all indirect taxes on goods and services at the state and the Central level. The VAT panel had last month accepted recommendation of a working group to have dual GST structure -- one at the state level and the other at the central level.

Source : Press Trust of India - New Delhi, India, dated 20/12/2007