FM to talk GST with states on Nov 10

A panel has been formed to evolve the framework

 
At the meeting the ECSFM is expected to submit the discussion paper on the GST to the Finance Minister.

Subsequently, the discussion paper, which will outline the basic features of the proposed GST, will subsequently be released for seeking comments from all the stakeholders like trade, industry and public at large, sources said.

Even though there are indications that there will be some delays in introducing the proposed GST, which is scheduled to be implemented with effect from April 1, 2010, the ECSFM is working towards putting the new tax regime on schedule, they added.

Though the ECSFM has more or less finalised the discussion paper on the GST it is unlikely to mention anything about crucial aspects of the new tax regime like tax rates and list of goods and services, which will come under the purview of the GST, sources said.

Ironing out differences among states, the ECSFM has so far evolved a consensus for a two-tier duty structure for GST. The ECSFM has proposed one standard rate for general goods and services and another lower rate for essential commodities.

The ECSFM while proposing one GST for precious metals like gold, silver and platinum has suggested a list of goods and services which would be exempted from the purview of GST. The ECSFM has constituted a 16-member Working Committee to evolve   framework as well as drafts for constitutional amendment for the purpose of allowing states to levy Service Tax for introducing GST.

The Committee is also mandated to prepare draft for model legislation on GST for the Centre and the states. Though the Centre has agreed to compensate those states, who are likely to incur revenue losses by switching over to the GST, some states  are suggesting that the GST should not be introduced in a hurry.