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GST may not meet April 1 deadline: Plan panel
January, 27th 2010

The Planning Commission today said that the proposed Goods and Services Tax (GST) is likely to miss the deadline of April 1, but it could be introduced in the next fiscal only.

"Well, we were hoping that it (GST) will come from April 1, but it does not appear that it will be so," Planning Commission Member B K Chaturvedi told PTI.

He, however, said the proposed indirect tax regime, aimed at doing away with most of the indirect taxes at the Centre and the states-levels, is likely to be implemented from the next financial year.

"Most likely it (GST) may come up from the next financial year," he said.

Many states like Madhya Pradesh, Tamil Nadu, Rajasthan and Gujarat are calling for delaying the introduction of GST against the schedule of April 1, 2010.

The introduction from the scheduled date seems almost impossible, since only a little over two months are left for it. Moreover, differences between the Centre and states have also cropped up on the rate structure and inclusion of alcohol, petroleum items and purchase tax into the proposed tax regime.

The Centre has opposed two rates suggested by states for goods under the proposed GST.

"There should be a single rate of SGST (state GST). A two rate structure of goods would pose problems," the Finance Ministry said in its comments on the discussion paper on GST by the Empowered Committee of State Finance Ministers.

 
 
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