A few politically thorny issues remained to iron out even though the government appeared confident that the new regime would be implemented to every states’ satisfaction.
Madhya Pradesh finance minister Raghavji said the proposed design of the GST are “radical in nature and it will alter the distribution of taxation powers between the Centre and the states.”
“States will not have the power to determine the tax base or the tax rate in GST and thus will not have any flexibility in the proposed tax system. This change will be against the spirit of cooperative federalism envisaged in the Constitution,” he said.
Gujarat finance minister Saurabhai Patel said there has no discussion to finalise the operational structure of tax administration. “This involves significant issue of tax adminisration like registration, filing of returns, assessment,” he said.