GST launch not from April 1; Panel to meet FM tomorrow
NEW DELHI: A high-powered group of State Finance Ministers on Thursday indicated that the proposed Goods and Services Tax, which will consolidate indirect taxes, may not be introduced as scheduled from April 1, 2010. “Together (Empowered Committee and the Finance Minister Pranab Mukherjee), we will announce a new date,” the Empowered Committee of State Finance Ministers Chairman, Mr Asim Dasgupta, told reporters here. When persistently asked whether the introduction of GST will be delayed, he said, “I am not saying anything on that.” He said the committee members will meet Mr Mukherjee tomorrow and discuss the date for introduction of GST. Some states like Madhya Pradesh, Rajasthan and Tamil Nadu have called for delay in introduction of GST. However, industry chambers earlier this week had called for introduction of GST as soon as possible. While States have come out with a discussion paper on GST, exact rates for the new tax are yet to be decided. However, a task force constituted by the 13th Finance Commission has suggested a single GST rate of five per cent for the Centre and seven per c ent for States. Mr Dasgupta said, “We have reservations over the taskforce recommendations, about the entire approach. We would like them to review methodology.” GST is expected to replace indirect taxes like excise duty, service tax at the central level, and VAT at state level, besides surcharge, cess and other local taxes. — PTI
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