FMs to debate GST on Friday

FMs to debate GST on Friday

“The state finance ministers are likely to discuss the comments of the Union finance ministry on various matters where there are some disagreements,” sources told PTI.

The Centre is against the two rates suggested by the states for goods under GST.  “There should be a single rate of SGST (state GST). A two rate structure of goods would pose problems,” the Union finance ministry had earlier to the states.

The panel, which will meet on Friday, had earlier proposed to adopt a two-rate structure for goods-–a lower rate for items of basic needs and a standard rate for others.

The GST, which will replace most indirect taxes, will be implemented from the next fiscal, a new deadline after earlier target of April 1, 2010 was missed.

The Centre is also against the states’ proposal to keep alcoholic beverages and some petroleum products out of the GST ambit as it feels that their inclusion will help remove the cascading effect of GST paid on inputs such as raw materials and packaging materials.