Finance Minister Pranab Mukherjee has proposed to have Goods and Services tax ,GST, at the central and state level from April next year. Addressing the empowered group of ministers in New Delhi today, Mr. Mukherjee also called for a three-tier structure for the implementation of GST. During the first year of introduction of the new indirect tax regime, the central government will keep the tax on essential items at 6 percent. The tax on other items will be at the standard rate of 10 percent. For services, the levy would be 8 percent. He added that the states too would impose a similar quantum of tax under the three categories, while the structures would be eventually merged. Corporate bodies have been demanding for uniformity in the central and state tax regimes, which when taken together can be as high as 30 percent, and result in rampant evasion. Under the proposal, the state goods and services tax (SGST) will also be kept at the same levels resulting in a single rate for CGST and SGST in the range of 10-12 percent in the next three years. Mr. Mukherjee advocated that the peak effective rate will be about 15 percent which will be quite acceptable to the trade and industry. Eventually, it will settle down to a level of 16 to 18 percent for both CGST and SGST which will mean an effective rate of 12 percent. In the second year of implementation of GST, the standard rate for SGST and CGST may be reduced to 9 percent retaining the rate for essential items at 6 percent.In the third year of its existence, the GST rates will be standardised at 8 percent for both goods and services at the central and state level. He said that the list of 99 items exempted under the present tax regime, will continue to enjoy exemptions under the CGST and SGST.The finance minister also said that states would be compensated as per the recommendations of the 14th finance commission for any revenue loss. AIR correspondent adds that all central and state taxes like excise, value added tax (VAT) and service tax will be rolled into GST once the new regime comes into effect.Earlier in the day, the EGoM headed by the West Bengal Finance Minister, Asim Dasgupta discussed the draft prepared by the Union Law Ministry to implement GST across the country. Consensus has been eluding Centre and the states on the issue so far. The GST was originally scheduled to be introduced on the beginning of the current fiscal.