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Meeting on GST tomorrow
January, 07th 2010

As the scheduled date for introduction of new tax regime GST draws closer, states will meet here tomorrow to discuss the fine contours of the proposed system.

The proposed Goods and Services Tax (GST) will replace most of the indirect tax levies like excise and service tax at the Centre and Octroi and VAT at the state level. The tax was scheduled to be introduced from April 1, 2010.

However, there are apprehensions that its introduction could be delayed by about six months to an year. Many states, including Madhya Pradesh, Tamil Nadu, Gujarat and Rajasthan, are demanding that the implementation be postponed as there is no consensus on the rates.

The 13th Finance Commission task force on GST has also recommended GST be delayed by six months i.e. till October along with suggesting the GST tax rate of 12 per cent--5 for the Centre and 7 per cent for the states.

However, states feel that a rate of over 15 per cent together for the Centre and the States would be good idea.

The Empowered Committee of state finance ministers has come out with a discussion paper on GST on November 10 last year. The discussion paper proposes replacing central levies like excise duty, service tax, special additional duty, countervailing duty with GST.

 
 
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