« Top Headlines » Open DEMAT Account in 24 hrs  Delhi HC Rules GST Registration Cannot Be Cancelled Retrospectively Without a Clear Show Cause Notice (SCN)  Belated income tax return AY 2026-27: How to file, late filing charges and what you may lose  Major Financial Changes from August 1, 2026: ITR Deadline, RBI MPC Meeting, Tatkal Ticket Rules & More  Government proposes to ease tax relief conditions for offshore funds  TallyPrime Connected Banking: Automating Banking and Accounting  ITR Filing Deadline 2026: Is July 31 the Last Date to File Your Income Tax Return? Latest Official Update  ITR filing deadline nears: How to file income tax return online on e-filing portal - quick 15-step guide  Will the ITR Filing Deadline Be Extended Beyond July 31 for FY 2025-26? Here's the Latest Update for Taxpayers  Income Tax Refund Delayed for AY 2026-27? 5 Common Reasons Your Refund May Be Stuck and How to Fix It  ITR Filing 2026: FM Nirmala Sitharaman Asks Tax Officials to Let Honest Taxpayers Correct Genuine Mistakes  Will Your FCNR Deposit Stay Tax-Free After Returning to India? Tax Rules Explained for NRIs «  ICSI looking at global opportunities... Corporate governance course... » States to review stance on CST compensation package September, 13th 2006 Empowered VAT panel to meet on Sept 23 The State Finance Ministers are to meet here on September 23 to review their stance on certain components of the Central sales tax (CST) compensation package over which there are disagreements with the Union Government. The meeting would take place under the aegis of the Empowered Committee of State Finance Ministers on Value-Added Tax (VAT). Measures While the Centre had proposed that the expected loss of revenue from the CST phase-out be compensated through "monetary and non-monetary" measures, the disagreement apparently is on issues such as what could be considered to be a monetary measure or a non-monetary measure. The Centre has already turned down the States' demand that they be given an additional devolution of 19.5 per cent (to make it 50 per cent) of the Centre's service tax collections. Currently, as per the tax devolution formula, the States are getting 30.5 per cent of all Central taxes, including service tax. Moreover, the States demand for choosing the three best consecutive years to ascertain the growth rate of CST collections has not found favour with the Centre. Indications are that the growth rate in the last three years up to 2005-06 (which is currently the base-year if the phase-out were to happen in 2006-07) would be taken for the calculation of the CST compensation package. There is also no agreement so far on any increase in VAT rates being counted as part of the package. Official sources said that the CST collections have been somewhat erratic in the recent years and noted that the compounded annual growth rate over the last 5-6 years have been about 12.6 per cent. In the last three years, the growth of CST has been around 18 per cent. CST collections have surged, especially in 2005-06, due to increased inter-State trade and also partly on account of reduced use of branch transfers under the VAT regime. Branch or consignment transfers may not be attractive for all industries in a VAT regime as States give input tax credit in certain cases. In Budget 2006-07, the Union Finance Minister, Mr P. Chidambaram, had said that he would return to Parliament with firm proposals, including legislative changes and a supplementary demand, as soon as the empowered committee and the Government reach an agreement.