New Delhi: The new date for the
implementation of the Goods and Services Tax, which will
replace most of the indirect taxes at the central and the
state level, will be announced in April after a meeting
between the states and the Union government.
"Because of the difficulties connected with the passing
of the required constitutional amendment bill in the budget
session, it will not be practical to introduce GST on April 1,
2010," Empowered Committee of States Finance Ministers
Chairman Asim Dasgpta told reporters here.
The Goods and Services Tax (GST) will do away with most
of the indirect taxes at the Centre like excise and service
tax and at the states like VAT and octroi. The tax was
scheduled to be implemented from April 1 this year.
However, due to lack of convergence among the states
regarding the structure and rated of GST, the introduction has
been delayed.
"The new date for introduction the Union Finance Minister
suggested would be settled in the month of April," Dasgupta
said.
With regard to Central Sales Tax compensation, Dasgupta
said that the finance minister has agreed to give Rs 9,676
crore, or about 68 per cent of the total revenue loss, to the
states.
CST, a levy on inter-state transfer of goods was reduced
to 2 per cent from 4 per cent with the aim of removing it
completely at the time of the introduction of GST.
PTI
