GST set to miss Apr 1 deadline
The Economic Times, January 05, 2010, Page 3
Devesh Kumar NEW DELHI
THE roll-out of the Goods and Services Tax (GST) is certain to be delayed beyond its scheduled launch date of April 1 this year because of administrative and constitutional constraints.
Even though a final call on the issue is expected to be taken only on January 8 at a meeting of states finance ministers convened by Union finance minister Pranab Mukherjee, it’s now certain that its roll-out date will be rescheduled. A task-force set up by the 13th Finance Commission has already come out in favour of deferment of its introduction by six months to October 1 this year
“Neither the Centre nor the states are ready for GST roll-out. The task-force set up by the 13th Finance Commission has already recommended that its launch be delayed by six months. But we feel that no major tax reform measure should go on stream in the middle of the financial year,’’ Bihar deputy chief minister Sushil Kumar Modi told ET on Tuesday.
There are too many outstanding issues yet to be resolved. The Centre, for instance, is yet to compensate the states for the revenue losses suffered by them because of the slashing of rate of central sales tax from 4% to 2%. Moreover, the union finance ministry is yet to circulate the draft of the constitutional amendment bill. The states, too, have to enact similar laws, but they too are not ready. Again, the states do not have the expertise to collect service tax.
Union finance minister Pranab Mukherjee, while participating in a function here on October 31, had dropped enough hints to suggest that the GST roll-out may be delayed by a few months.
I am trying to stick to the time schedule, but I will not be surprised if there is slippage of a few months,’’ Mr Mukherjee had then told newspersons, adding that the government was sincerely trying for convergence on various issues.
In its meeting held on December 17, the empowered committee of state finance ministers on GST had decided to hold a meeting with the union finance minister in early January to thrash out certain constitutional and administrative hitches pertaining to the new indirect taxation regime. Briefing newspersons after the previous round of the empowered panel’s meeting, chairman Asim Dasgupta had then remarked: ``For certain difficulties [which] were reported to us, it would be difficult to introduce the bill for GST in this winter session…He [Pranab 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 added.
The January 8 conclave will be preceded by a meeting of the empowered committee, in which the revenue-neutral rate is is expected to come up for discussion.
The Economic Times, January 05, 2010, Page 3
Devesh Kumar NEW DELHI
THE roll-out of the Goods and Services Tax (GST) is certain to be delayed beyond its scheduled launch date of April 1 this year because of administrative and constitutional constraints.
Even though a final call on the issue is expected to be taken only on January 8 at a meeting of states finance ministers convened by Union finance minister Pranab Mukherjee, it’s now certain that its roll-out date will be rescheduled. A task-force set up by the 13th Finance Commission has already come out in favour of deferment of its introduction by six months to October 1 this year
“Neither the Centre nor the states are ready for GST roll-out. The task-force set up by the 13th Finance Commission has already recommended that its launch be delayed by six months. But we feel that no major tax reform measure should go on stream in the middle of the financial year,’’ Bihar deputy chief minister Sushil Kumar Modi told ET on Tuesday.
There are too many outstanding issues yet to be resolved. The Centre, for instance, is yet to compensate the states for the revenue losses suffered by them because of the slashing of rate of central sales tax from 4% to 2%. Moreover, the union finance ministry is yet to circulate the draft of the constitutional amendment bill. The states, too, have to enact similar laws, but they too are not ready. Again, the states do not have the expertise to collect service tax.
Union finance minister Pranab Mukherjee, while participating in a function here on October 31, had dropped enough hints to suggest that the GST roll-out may be delayed by a few months.
I am trying to stick to the time schedule, but I will not be surprised if there is slippage of a few months,’’ Mr Mukherjee had then told newspersons, adding that the government was sincerely trying for convergence on various issues.
In its meeting held on December 17, the empowered committee of state finance ministers on GST had decided to hold a meeting with the union finance minister in early January to thrash out certain constitutional and administrative hitches pertaining to the new indirect taxation regime. Briefing newspersons after the previous round of the empowered panel’s meeting, chairman Asim Dasgupta had then remarked: ``For certain difficulties [which] were reported to us, it would be difficult to introduce the bill for GST in this winter session…He [Pranab 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 added.
The January 8 conclave will be preceded by a meeting of the empowered committee, in which the revenue-neutral rate is is expected to come up for discussion.
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