GST: Delay in Implementation
2006, the UPA Government announced that a comprehensive GST would be launched on
1st April, 2010 and it was believed that the introduction of GST is a
difficult task, as our current structure of indirect taxes is driven by the
multiplicity of taxes. Some levied by the Centre and others by the States.
the Chairmanship of Dr. Asim Dasgupta, the Empowered Committee carve out the
design and structure of GST. The new regime GST gives an opportunity to bring
together the machinery of the Centre and the States to jointly work for better
Minister has also realized and stated that we have travelled a long way on
implementing or introducing a GST regime.
new debatable question arose as the time passes that creates confusion on
various aspects between Centre and State and thus causes delay in the
implementation of the GST i.e. on 1st April, 2010. States including
Oct, 2009 the E C of state Finance Minister have decided to release a discussion
paper regarding the final structure of GST by the end of the month. But, States
like Karnataka and
is much dispute over the reduction rate of Central Sales Tax .Due to CST
reduction, some States were losing revenue in crores annually. Dr.Asim Dasgupta
also said that 'CST loss is a serious issues for States'.
another controversy arose in the matter of petroleum and in alcohol. There are
restrictions on availing credit of taxes paid on fuels. Further, the Task Force
has recommended a dual levy of GST and excise on tobacco and alcohol with
restrictions on credit. The EC aligned with the Task Force on Tobacco, however
in case of alcohol they suggested that it should be out of the ambit of
GST while Vat and excise duty should be continued.
Kelkar, chairman of the 13th finance Commission also suggested
sectors such as real estate and construction as well as railways to brought in
the ambit of GST just to bring more transparency in the real estate sector
the source of The Hindu Business….Mr. Jose Cyriac, Additional Secretary (
Revenue ) Ministry of Finance stated that the GST regime, which is excepted to
come into force on April 1, 2010 will be 'trade friendly' and also warned about
the issues includes consensus over rates, differential rates on certain items,
compensation mechanism for States losing out on revenue etc and also required a
constitutional amendment for its implementation.
First Discussion Paper released by
Empowered committee of finance Minister on 10th Nov,2009 envisages an
extremely diluted form of GST and the implementation of the GST should be
postponed to 1st Oct,2010.
an Interview with CNBC-TV 18, Rajeev Dimri Head Indirect taxes at BMR and
associates told that "The government could make some preparatory
changes." The GST was implemented on April 1st 2010 but, now it
is excepted that it will implemented on April, 2011.
interview with Anil Khandelwal Chief Financial Officer, Cox and Kings (
26th Feb,2010 Finance Minister in Budget speech has announced a
roadmap for GST. In his words, "The process of building a simple tax system
is near completion." We aim to implement GST by April 1,2011.
is a also criticism against the number of exemption mentioned in budget that
meant to increase the distortions.