Not Feasible To Introduce GST From April 1 (23-Feb-2010)
The state finance ministers have informed the parliament today that the Goods and Services Tax (GST), which will replace most of the indirect taxes at the central and the state levels, cannot be implemented from April this year as a future possibility.
When Rajya Sabha asked the finanace minister, Mr.Pranab Mukherjee whether the Chairman of the Empowered Committee of the State Finance Minister has expressed the opinion that it was not feasible to implement GST from April 1, 2010, Mr.Mukherjee in reply said yes to Rajya Sabha
In April, Mr.Mukherjee would meet state finance ministers to discuss the implementation of the GST.
He said that last on January 28, 2010, a meeting was held with the state finance ministers and it was decided that discussions on GST will be continued in another meeting in early April, 2010.
He further said a joint working group consisting of officers of the Central Government, a few state Governments and the Empowered Committee of the state Finance Ministers, has been constituted to prepare drafts of the constitutional amendment bill, central GST legislation, model state GST legislation and related rules.
Replying to another query, Minister of State for Finance S S Palanimanickam said that in the proposed GST, the features finalised so far include the dual GST model, subsuming central excise, service tax and value added tax.
Last month, the Central government has favoured keeping alcohol and petroleum products under the purview of Goods and Services Tax (GST), with rejecting a recommendation made by the Empowered Committee of State Finance Ministers.
The Centre has rejected the proposal given by states that alcoholic beverages may be kept out of the purview of proposed Goods and Services Tax (GST) system. The Revenue Department has taken a standpoint that alcoholic beverages should be brought under the purview of GST and that the State excise duty can be charged over and above GST.
Value Added Tax (VAT) and state excise duty can be charged on alcoholic products over and above GST, the finance ministry said.
However, the Ministry agreed with the committee to subject tobacco products to GST with input tax credit. The Centre can levy excise duty on tobacco products over and above GST without input tax credit.
Besides, the Centre has also declined the States'' proposed move to take on a two-rate structure. The Revenue Department has said that there should be one CGST rate both for goods as well as services.
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