State FMs to meet Pranab on 7 Jan on GST implementation

State FMs to meet Pranab on 7 Jan on GST implementation

New Delhi: The Empowered committee of state finance ministers on the Goods and Services Tax on Wednesday decided to meet finance minister Pranab Mukherjee on 7 January to sort out the constitutional and administrative issues related to the introduction of the new tax regime.

“For certain difficulties (that) were reported to us, it would be difficult to introduce the Bill for GST in this winter session," committee chairman Asim Dasgupta told reporters after a meeting in the capital.

“He (Mukherjee) has said he is very willing to discuss with us in January after this Parliament session is over. After our meeting with him, we would be able to take a decision on constitutional amendment and other preparations," he said.

The Committee met amid apprehensions about the GST implementation from next fiscal. A task force of the 13th Finance Commission has suggested the new tax regime should be deferred by six months, from 1 April to 1 October, 2010.

Bihar finance minister Sushil Modi said the GST could be delayed by an year.

The GST seeks to replace the complex system of levies on goods and services at the Central and State levels. It is proposed to apply to both goods and services, covering virtually all sectors and industries.

Seen as one of the most important tax reform initiative in India since independence, the GST is expected to provide a significant boost to investment and growth of the economy, impacting virtually all aspects of businesses in the country.