States to meet FM to finalise GST base

“We will meet the FM on October 8 and then finalise the list,” Chairman of Empowered group of State Finance Minsters Asim Dasgupta said.

The states have decided that there will be two basic rates in their GST structure — one standard rate and a lower rate for essential items. Besides, there will be a special rate for a small list of precious items in the new tax system that is scheduled to be introduced from April 1, 2010. There would be a dual structure of GST, one at the centre and the other at the states level. While there will be two basic rates in the states, the centre has not yet decided on  the number of rates.

The GST would do away with most of the indirect taxes like excise, service tax at the Centre and VAT in states and will be a move towards a unified indirect tax regime.

The rate would also decide whether stimulus would continue or rolled back or diluted as it is given by cutting excise duty by six per cent and service tax by two per cent.

Sources, said the Centre might go for just one rate. Only after the Centre decides the issue and the list of items to be included in GST, the exact rates could be finalised.