GST regime likely to be delayed on major centre state differences
29 Oct 2010
The centre today exuded confidence that state finance ministers would be able to achieve consensus on Goods and Services Tax (GST) during their Goa meeting to pave the way for a new tax regime. The GST has been hanging fire for a long time now and it was time a final agreement was struck on the issue, according to analysts.
''The empowered State Finance Ministers are meeting today. I am hopeful there will be a consensus which we can accept and bring in the GST some time in the next financial year,'' revenue secretary Sunil Mitra told reporters on the sidelines of a FICCI Tax conference in New Delhi.
The roll out of GST, which will subsume excise duty and service tax at the centre's level and VAT on the states front, besides local levies, is already behind the 1 April 2010 deadline.
According to analysts, meeting the new deadline of 1 April, 2011 does not seem possible either and the centre now says, the roll out may happen sometime in the next financial year.
The Empowered Committee of State Finance ministers is meeting in Goa over a two-day period starting today to discuss the GST model drawn up by the central government and arrive at a consensus on the issue.
The state FMs may suggest alternative models, though Mitra says he expects the state FMs to reach a consensus on the GST structure today and present the counter draft amendment bill to the Centre.