GST enters final leg
A final roadmap for introducing the ambitious goods and services tax (GST) is likely to emerge on Friday, even as the original deadline of April 1, 2010 will be missed.business Updated: Jan 07, 2010 20:55 IST
A final roadmap for introducing the ambitious goods and services tax (GST) is likely to emerge on Friday, even as the original deadline of April 1, 2010 will be missed.
A consensus date for introducing the regime will most likely be announced after a meeting of the empowered committee of state finance ministers and with Finance Minister Pranab Mukherjee on Friday.
“Together (Empowered Committee and Finance Minister Pranab Mukherjee), we will announce a new date,” Empowered Committee chairman and West Bengal Finance Minister Asim Dasgupta said.
The new regime, billed as the most ambitious tax reform initiative to be undertaken in the country, is aimed at removing distortions in the indirect taxes that is currently mired in a web of levies such as excise, value added tax and service tax and various surcharges and cesses.
A task force of the 13th finance commission has proposed a single 12 per cent rate for GST. This would consist of a 5 per cent tax imposed by the Centre and 7 per cent by the states. The proposals, if adopted, can dramatically alter tax
administration by giving a one-shot solution to a welter of levies such as excise, value added tax and octroi.
State governments, however, were not happy with the recommendations of the task force.
“We have reservations over the taskforce recommendations, about the entire approach. We would like them to review methodology,” Dasgupta said.