New Delhi: Co-chairman of joint working group on goods and services tax (GST) Parthasarthi Shome today indicated that the proposed GST structure could have dual format at the central and state levels.
“We have in our own mind some ideas...(on) how we might be able to roll out (GST) or what the overall structure would be. Let’s hope we can have central GST and state GST in dual format,” Shome said at International Tax Conference organised by FICCI.
GST, proposed to be implemented from 2010, would be levied on all goods and services at the central and state levels at a single rate facilitating compliance and administration by avoiding the need to distinguish product taxed at different rates.
However, it is not yet clear whether GST would have two different structures at the centre and state levels.
To work out a model for GST, an official VAT panel has constituted a working group, co-chaired by Shome — advisor to the Union Finance Minister — and panel member secretary Satish Chandra.
The report of the sub-group wuld be made available to the Empowered Committee of State Finance Ministers on VAT very soon, Shome said.
The VAT panel is meeting on 28th or 29th of this month to deliberate on the issue, he said.
Earlier this month, apex accounting body Institute of Chartered Accountants of India (ICAI) had recommended that GST should have two parallel tax structures.
Shome suggested that every one should see the GST structure as a whole and not just how that would affect one’s manufacturing or service unit.
There would be pluses and minuses, but on the whole there would be lot of pluses, he added.