Business OpportunitiesMinisters' panel points to delay in GST launch
A high-powered group of state finance ministers today indicated that the proposed Goods and Services Tax (GST), which will consolidate indirect taxes, may not be introduced as scheduled from April 1, 2010.
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"Together (Empowered Committee and Finance Minister Pranab Mukherjee), we will announce a new date," Empowered Committee of state finance ministers chairman Asim Dasgupta told reporters here.
When persistently asked whether the introduction of GST will be delayed, he said, "I am not saying anything on that."
He said the committee members will meet Mukherjee tomorrow and discuss date for introduction of GST.
Some states like Madhya Pradesh, Rajasthan and Tamil Nadu have called for delay in introduction of GST. However, industry chambers earlier this week had called for introduction of GST as soon as possible.
While states have come out with discussion paper on GST, exact rates for the new tax are yet to be decided. However, a task force constituted by 13th Finance Commission has suggested a single GST rate of 5 per cent for the Centre and 7 per cent for states.
Dasgupta said, "We have reservations over the taskforce recommendations, about the entire approach. We would like them to review methodology."
GST is expected to replace indirect taxes like excise duty, service tax at the central level, and VAT at state level, besides surcharges, cesses and other local taxes.