Finance Minister Pranab Mukherjee today said the Centre is working at a political level with states for countrywide roll-out of Goods and Services Tax (GST). He however added that it may take some time to arrive at a consensus on the new indirect tax regime. Talking to reporters in New Delhi, Mr Mukherji said, government is working on GST to evolve the consensus in close cooperation with the Empowered Committee of State Finance Ministers. AIR correspondent reports that once implemented, GST will subsume indirect taxes like excise duty and service tax at the central level and VAT on the state front, besides other local levies. The Centre has proposed a three-tier GST structure. As per the proposal, GST will be levied at two rates on goods a concessional 6 per cent on essential items and 10 per cent for others, while services will attract 8 per cent GST.These will be collected by both the Centre and the states.The original deadline of April 1, 2010, for roll-out of GST has already been missed and the Centre has said it will make efforts to roll it out from April 1, 2011. The proposal for roll-out of GST, touted as the most significant indirect tax reform since the introduction of state-level VAT, has been hanging fire on account of persisting differences between the Centre and states on the GST Constitution Amendment Bill.
News On AIR | January 24, 2011 1:35 PM
Consensus on GST may take time: Pranab