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Pranab to meet state FMs on Jan 13; govt to miss GST deadline
January, 11th 2010

Finance Minister Pranab Mukherjee may meet state finance ministers next week to discuss their requirements and implementation of proposed Goods and Services Tax, speculated to be delayed by over six months, is likely to be discussed during the meeting.

"Finance Minister will meet state finance Ministers on January 13 as a pre-budget exercise," an official said.

Among other things, the meeting is also likely to discuss issues pertaining to implementation of GST, which is likely to be delayed by at least seven to eight months, he said.

The government had proposed to introduce GST from April 1, 2010, but it would not be possible as the constitutional amendments, necessary for introduction of the new tax structure which will subsume levies like excise, VAT and service tax, would take seven to eight months.

The government, the official said, may not introduce the amendment bills in the forthcoming Budget session as there is no consensus among the states on rates and modalities of the new tax regime.

States, which have been clamouring for more funds to tide over the financial difficulties following the economic crisis which had hit revenue collections, will also raise the issue of compensation on account of phasing out of the Central Sales Tax (CST).

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