The type of Goods and Services Tax (GST) suited to the Indian conditions, rate of tax and phasing out of Central Sales Tax are some of the issues that need to be addressed before GST can be introduced in the country.

Convergence of excise duty, service tax and value-added tax (VAT) rates and infrastructure for collection of GST are other issues that call for a debate for implementation of GST by 2010, according to the PHD Chamber of Commerce and Industry.

Stressing the need for laying a roadmap for the introduction of the GST, the chamber says that the foremost issue is to decide whether GST is going to be a single or dual one. Next in importance is integration of VAT on services and goods both in its design and administration and determination of an effective, workable and productivity-friendly rate of tax, according to the chamber.

The chamber also says that the GST is around 20 per cent globally, while in India the indirect taxes burden both Central and States works out to over 30 per cent. In case a negative list is framed for exclusion from the tax net as recommended by the Kelkar Committee, it is necessary to cap the rate since arbitrariness would lead to unrealistic imposition of taxes, which would be against the cannons of taxation such as equity and fair play.

The chamber has also laid emphasis on modern digital infrastructure before switching over to GST.