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Goods and Services Tax set to become a reality by June 2012
March, 04th 2011

Amidst the centre failing to build consensus among states over the proposed goods and services tax, the ambitious indirect tax reform is not likely to come before June 2012. Sunil Mitra, revenue secretary in a post budget press conference said, some states still have differences over certain parts of the GST draft. The dialogue process will continue.

However, we will table the constitutional amendment bill in the current budget session. We are expecting GST to become reality only by June next year. The indirect tax reform will now come only after direct taxes code, which will be implemented by 1st April 2012.

Highlighting the centres strong commitment to bring out GST, finance secretary Sushma Nath said, by keeping the excise duty and service tax rate at the current level of 10% which is in line with GST single rate structure, centre has send out a strong message that GST will have to be implemented.

Although fiscal stimulus given earlier in the form of excise duty and service tax cut has not been taken back but centre has expanded the services tax net to include air-conditioned hospitals with more than 25 beds and air-conditioned restaurants.

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