GST deadlock over as states resolve contentious issues: Modi

Comments 0
SummaryPaving the way for early rollout of Goods and Services Tax, states today reached a broad consensus on the design of the new indirect tax regime under which states will be free to decide on the time of its introduction.

phasing out the Central Sales Tax, a precondition for rollout of the GST.

The centre had then promised the states that it would bear losses due to reduction of CST.

The Empowered group also set up three sub-committees to resolve issues which could not be agreed upon by the finance ministers of different states, he said, adding that they would submit report in three months.

They would deal with revenue neutral rates, withdrawal of dual control system and taxation of inter-state movement of goods.

GST rollout has missed several deadlines on account of differences over contentious issue of CST compensation and design of the GST structure between the states and the Centre.

Introduced in Lok Sabha in March 2011, GST Constitution Amendment Bill is with the Standing Committee on Finance.

Modi had yesterday said that the states desire that the GST should be rolled out in next fiscal, failing which they would revert to the CST levy of 4 per cent.

Finance Minister P Chidambaram recently said that even as GST Bill is unlikely to be passed by April 2013, he hopes to introduce it in the Monsoon session.

Single Page Format
Ads by Google
Reader´s Comments
| Post a Comment
Please Wait while comments are loading...