FM on GST

Dated:- 4-8-2010 – On GST, stated position After careful consideration of the issues raised by the Empowered Committee of State Finance Ministers, we have revised our position to accommodate the concerns of the State Governments. The Central Government is willing to consider a phased approach for the introduction of GST. In a departure from its earlier stand, the Central Government is also willing to accept a dual rate structure in the transitory phase leading eventually to a model GST . The revised position on some of the key issues is as follows: Exempted List At present, 99 commodities are in the exempted list of VAT. States propose to keep these in the exempted list of SGST. The Central Government would align its exemption list with th

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ge of turnover without input tax credit) should be uniform for CGST and SGST at ₹ 50 lakh per annum. However, Centre could consider a higher threshold of ₹ 1 crore if the States also agree to raise the limit. Rate Structure As you would recall in the meeting held on 13th January, 2010, FM had clearly stated that the ideal position would be to adopt a single rate structure with a common rate for goods and services. However, to facilitate the introduction of GST regime by 1st April, 2011, the Central Government proposes to keep CGST merit/lower rate for goods at 6% and standard rate at 10%. The services will be charged at 8%. Our request to the States will be to consider keeping the same rates i.e. the lower rate for SGST at 6%, s

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