No need for a major revision in GST Bill: Sushil Kumar Modi

Dec 28 2012, 01:58 IST
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SummaryThe Goods and Services Tax Bill pending with a Parliamentary panel does not require major changes before its re-introduction in Parliament despite the recently ordered review of the proposed indirect tax regimeís design, said Bihar deputy chief minister Sushil Kumar Modi, who heads a panel of state finance ministers on GST.

the Union government and state ministers are expected to give final shape to a consensus on GSTís structure and compensation to states for their reduced revenue collection from central sales tax (CST) on goods.

CST, which is levied on the movement of goods from state to state, was lowered from 4% to 3% in 2007-08, and further to 2% in 2008-09 after the introduction of Value Added Tax (VAT). States were given a compensation of Rs 6,393 crore for 2010-11 but they insist on getting Rs 12,666 crore more for the period. The finance ministry lowered compensation to states that raised their VAT from 4% to 5%, taking into account the revenue thus raised.

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