GST……Goods and Services Tax

Part-A

First Discussion Paper on GST

• GST comes in picture when in Central Budget 2007-08, Union Finance Minister made an announcement that GST will be introduced from 1^st April, 2008.
• The task given to Empowered Committee of State Finance Ministers to make a road map for GST in consultation with Central Government.
• The Empowered Committee decided to setup a Joint Working Group in May, 2007.
• The Joint Working Group submits its report on GST in Nov.2007.
• The report submitted by Joint Working Group was discussed in detail and a final version of the views on GST of Empowered Committee was sent to the Government of India in April, 2008.
• The comments of Government of India on the same is received and duly considered by Empowered Committee in Dec.2008.
• A Committee was formed to consider the comments of Government of India.
• The Committee submitted its views on the same and was accepted in principle by the Empowered Committee in Jan, 2009.
• A Working Group was formed to submit their recommendations in detail on the structure of GST in close association with the Government of India.
• A discussion was made in between Union Finance Minister and the Empowered Committee on compensation for loss of the states on account of phasing out of CST in Oct.2009.
• The Empowered Committee after taking recommendations of Working group and other related matters, presents a detailed view on structure of GST finally.
• This detailed view on structure of GST was presented in the form of First Discussion Paper in Nov. 2009.
• The First Discussion Paper has four segments.
• First Segment explains a brief reference to the process of introduction of VAT and also areas where needs improvements
• Second Segment explains the process of preparation for GST.
• Third Segment explains in detail the comprehensive structure of the GST model.
• Fourth Segment has FAQ on GST.