Dated:- 14-12-2010 – FM Expects Inflation to come down to 6 per cent by March, 2011 Govt willing To Consider a Phased Approach for Introduction of GST: FM GST would Improve Tax Collections and Boost India's Economic Development: FM GST to Encourage Consumer Friendly Product Pricing to Benefit Aam-Admi: FM FM Inaugurates National Seminar on GST The Central Government, with a view to evolve a consensus, is willing to consider a phased approach for the introduction of GST, a step towards further consolidation of taxes on goods and services to achieve a genuine value added tax system at all levels in the country, stated the Union Finance Minister Shri Pranab Mukherjee, here today. In a departure from our earlier stand, as a transitory measure, we are also willing to accept a dual rate structure that could eventually lead to a model GST regime , he added. The Finance Minister was addressing the inaugural session of a two-day National Seminar on 'Goods and Services Tax : Transition
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state of the art IT platform to make tax administration in the country more efficient. Speaking to the mediapersons on the sidelines of the Seminar Shri Mukherjee said that the inflation is expected to come down to 6 per cent by March, 2011. The text of Finance Minister's inaugural address at the Seminar is as follows: I am happy to be here at the inauguration of the Seminar on the Goods and Service Tax (GST). Let me start by congratulating the Comptroller and Auditor General of India for taking this timely initiative for bringing together the various stakeholders to deliberate on this issue when India's tax structure and its legal framework is being reviewed and is in the process of being finalized. I understand that the seminar seeks to focus on transition issues that would have to be addressed by tax administrators, both at the Centre and at the State levels, as they set out to implement the GST in due course. I am glad that this discussion is going to benefit from the part
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extent- the compulsions for tax rate war among States and also moderated the cascading effect of taxes on commodities. More importantly, VAT was an effort at improving tax payer friendliness with greater faith being reposed in the tax payer. The implementation of VAT brought a steady increase in the revenues of the States. We are now hoping to take the next step by moving towards an economy-wide generalized system of goods and service taxes. From the current mixed system of taxation, both at the Centre and States, we are moving towards value added tax principle with input tax credit mechanism for taxation of goods and services. The proposed GST is a natural step towards further consolidation of taxes on goods and services to achieve a genuine value added tax system at all levels in the country. GST is likely to improve tax collections and boost India's economic development by integrating the Indian market through a uniform tax rate. As I have said earlier, it is a win-win situatio
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dness on the administrative and legislative front before embarking on the implementation of tax proposals presently under consideration. One important issue brought out in the said study report is lack of required automation in commercial tax administration of State Governments. This is an issue that has been flagged for discussion in this seminar. The Central Government has recently launched a mission mode project for computerization of commercial tax administration of States and UTs. I am told that project proposals for 31 States have already been sanctioned with an overall cost of ₹ 975 crore. Around 70 per cent of the project cost is being borne by the Government of India. Some States like Maharashtra, Kerala, West Bengal and Rajasthan have been able to use these funds and successfully put in place modern IT systems as a part of their tax administration. These systems will support e-services like e-registration, e-payment, e-return filing, e-issue of 'C' forms and con
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T has been prepared and sent to the Empowered Committee of State Finance Ministers for seeking the views of the States. The Empowered Committee is discussing the draft to arrive at a consensus on the issue. It is my earnest hope that there will be a convergence of views on this draft so that the required bill for making these amendments could be introduced in the Parliament at the earliest. Efforts are being made in parallel to prepare Central GST legislation and model State GST legislation. A model State GST Legislation, in sync with Central GST Legislation and common processes to be followed by the Central as well as the State Governments will help in strengthening an integrated national market. That in turn should provide a further impetus to the growth momentum of our economy. On our part, with a view to evolve a consensus 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 introd
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