Though on a bumpy ride, government is still optimistic that goods and service tax (GST) will be implemented in line with time. Finance Minister Pranab Mukhejee has said that GST will be meet its deadline of April, 2011 reports.
Informing that the government hasnt changed the date for GST, Mukhejee has informed hat the negotiations are continuing on its introduction. Though Congress-ruled states have favoured it several BJP states are still playing hardball.
Earlier there were news that FM may go slow on rolling out GST as the government has not managed to get a consensus among all the states.
Mukherjee had offered concessions on most major demands by states on legislation needed to allow a tax reform to take effect from next April.
As per the changes introduced, regime would replace existing multiple state and central levies such as excise duty, service tax, and value-added tax, simplifying tax administration, and aiming to curb tax evasion.
After states objected to a clause in the draft GST bill giving the federal finance minister veto power over state tax matters, the finance minister dropped this clause altogether.