State FMs meet Pranab on Jan 7 to debate GST
The Empowered Committee of State Finance Ministers on Goods & Services Tax, on Wednesday, decided to meet Finance Minister Pranab Mukherjee on January 7 to sort out the constitutional and administrative issues related to the introduction of the new tax regime.
“For certain difficulties (that) were reported to us, it would be difficult to introduce the Bill for GST in this winter session,” Committee Chairman Asim Dasgupta told reporters after a meeting here. “He (Mukherjee) has said he is very willing to discuss with us in January after this Parliament session is over. After our meeting with him, we would be able to take a decision on constitutional amendment and other preparations,” he said.
The Committee met amid apprehensions about the GST implementation from next fiscal. A task force of the 13th Finance Commission has suggested the new tax regime should be deferred by six months, from April 1 to October 1, 2010.
The GST seeks to replace the complex system of levies on goods and services at the Central and State levels. It is proposed to apply to both goods and services, covering virtually all sectors and industries.
Asked if the GST introduction could be delayed, Dasgupta said, “we discussed this over the phone with Union Finance Minister but he said we would discuss it together later and comment on it later.”
On the recommendation of the 13th Finance Commission’s Task Force, he said, “we have taken a note of it. ”
On the task force suggestion that the GST should be implemented from October 1, 2010, Modi said, “it is not advisable to do it from mid-year. If it has to be done, it should be done from next financial year (April 1, 2011).” The constitutional amendments have not been done and there are couple of issues that needs to be addressed, he said, adding, “it could be delayed by an year.”
The Discussion Paper prepared by Empowered Committee has suggested four GST rates, including a separate category for exempt items. Dasgupta earlier this week had said the GST would have four slabs and hoped the rates would be released in the next 15 days.
