Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: form 3cd :: empanelment :: due date for vat payment :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: cpt :: TDS :: VAT RATES :: VAT Audit :: ACCOUNTING STANDARD
 
 
« Service Tax »
 Credit Note And Debit Note Under Gst
 Demonetisation hits service tax, excise duty collection
 GST on a knife-edge as states act tough
 Parliament Winter Session: Govt keen on proper discussion on GST Bills
 Service Tax revision to make digital content expensive: Here’s how it will impact you
 GST Council may reduce tax slabs in future: CBEC chief
 Govt to waive service tax on card transactions up to Rs 2,000
 Recovery Of Tax Under Model Gst Law
 Income Tax officials hunt for Mumbai’s ‘ghost’ assessee
 GST delay to impact Budget
 If GST not rolled out by Sept, there won't be taxation in country, warns Jaitley

PM rallying for consensus on implementing GST
April, 10th 2012

Industry may have started losing hope that the United Progressive Alliance (UPA) government would be able to implement the Goods and Services Tax (GST) soon, as it requires a constitutional amendment, but Prime Minister Manmohan Singh is taking personal interest in the matter and talking to chief ministers to build a consensus, especially with opposition-ruled states.

The push by the prime minister for an early implementation of the GST was palpable when he met Bihar chief minister Nitish Kumar and his deputy Sushil Modi on Friday to discuss the power situation in the state. Soon after the meeting, Singh called Modi for an exclusive discussion on the GST and asked him to try and build a consensus on the issue. Singh told Modi to take personal interest in building a consensus on the GST and urged him to speak to all Opposition-ruled states, specifically to states in which the Bharatiya Janata Party (BJP) was in power.

The UPA is aware of the fact that without the BJPs help, a constitutional amendment would be difficult to achieve.
Modi is scheduled to meet finance minister Pranab Mukherjee on April 17. While Modi may ask the finance minister to reconsider his decision to stop compensation to states for the revenue loss due to a cut in the Central Sales Tax (CST) rates, Mukherjee is likely to urge the chairman of the empowered committee of state finance ministers to bring states on board for early implementation of the GST.

The committee would meet on April 18 to discuss the issue of CST compensation, the Budget proposal to introduce a negative list for taxation of services by the Union government and progress on information technology platform GST-Network, said a finance ministry official.

The meeting would be crucial as states may try to bargain hard with the Centre before moving ahead on the GST rollout. Miffed with the governments decision to discontinue CST compensation and introduce the negative list without taking their concern on board, states have been asking the Centre to increase the CST rate to four per cent or fully compensate these for the losses and keep items already taxed by the states out of the service tax net. CST, a tax on the inter-state movement of goods, was earlier cut to two per cent from four per cent in two phases.

Interestingly, almost two months earlier, finance minister Pranab Mukherjee had told a few chief ministers implementation of the GST would be difficult because major economic policies were initiated in the first or the second year of a government. Since elections to the Lok Sabha are scheduled for 2013-14, the government doesnt want to implement the GST yet, as it would take at least two years to stabilise. Implementing the GST in the last year could have a rattling effect, and this could affect the Congress performance in the Lok Sabha elections in 2014.

Senior members in the Union government said Modi, chairman of the empowered committee on the GST, had assured the prime minister he would talk to all chief ministers and state finance ministers to build a consensus. Modi also told Singh some of the senior ministers of the government were unsure whether the GST should be implemented before the 2014 general elections.

There is also a trust deficit between the Union government and Opposition-ruled states, which suspect the Union government would not compensate these for the losses they are incurring. Since the Centre had only provided Rs 300 crore as the CST component to states in the Budget, the finance ministry has categorically said there would be no compensation for 2011-12 and the Budget for 2012-13 is silent on the CST compensation, many states believe the UPA would not compensate these for the GST as well.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Experience

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions