Published on Sat, Aug 21, 2010 at 12:54 | Source : CNBC-TV18
Updated at Mon, Aug 23, 2010 at 10:39
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GST likely to be delayed by upto a year
Government’s ambitious goods and service tax (GST) hits another roadblock as it may suffer further delays. The tax reforms may be delayed from its earlier deadline of Aoril 2011 by upto a year, reports CNBC-TV18 quoting sources.
Government's ambitious goods and service tax (GST) hits another roadblock. The tax reforms may be delayed from its earlier deadline of April 2011 by upto a year, reports CNBC-TV18's Siddarth Zarabi quoting sources.
It is learnt that the Finance Minister Pranab Mukherjee may go slow on rolling out GST as the government has not managed to get a consensus among all the states.
Though Congress-ruled states have favoured it several BJP states are still playing hardball.
Earlier Mukherjee offered concessions on most major demands by states on legislation needed to allow a tax reform to take effect from next April. As per the changes introduced, regime would replace existing multiple state and central levies such as excise duty, service tax, and value-added tax, simplifying tax administration, and aiming to curb tax evasion.
After states objected to a clause in the draft GST bill giving the federal finance minister veto power over state tax matters, the finance minister dropped this clause altogether.
In a major concession to dissenting states, Mukherjee said decisions taken by a proposed GST council will be taken by consensus. Mukherjee also promised states another revised draft of the GST bill to reflect these concessions.
However Direct Tax Code Bill will be tabled in the current session of the Parliament.
