|
The
meeting is not likely to discuss the rate of GST, but
broad contours of it, official sources said. “That stage
has not come to discuss the rate,” they said. The
meeting is likely to discuss the probable number of
goods and services to be covered under the new tax
system, they added.
Already, a
consensus has been reached to have dual model of Goods
and Services Tax (GST), that is both the Centre and
states will impose the new tax. Alternative model could
have been to allow the Centre to collect GST which could
then be distributed among the states and the Union
Government.
But the
states did not agree for this, and hence agreement was
reached on dual model. The GST, proposed to be
introduced from April 1, 2010, would broadly replace
excise duty and service tax at the Centre and sales tax
at the state level.
Agenda of
the meeting of VAT panel does not include reduction of
sales tax on jet fuel, even as the beleaguered aviation
industry is calling for their cuts, the sources said.
“There is
nothing to discuss on the issue. We are very clear on
this (reducing sales tax on ATF),” the sources said.
Source :
Hindu Business Line, India, dated 21/08/2009
|
