GST: DELAY IN IMPLEMENTATION

Goods and Service Tax – GST – By: – Nagesh Bajaj – Dated:- 14-9-2011 Last Replied Date:- 30-12-1899 – In 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. Under 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 enforcement. Prime Minister has also realized and stated that we have travelled a long way on implemen

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egarding the final structure of GST by the end of the month. But, States like Karnataka and Gujarat opposed the deadline i.e. April 1, 2010 as having inadequate ground level preparations and some States also pointed out that the preparation of IT infrastructure HSN code and legislation is essential, especially for tracking the movement of goods and services. There 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'. The 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 h

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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. The 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. In 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. Another interview with Anil Khandelwal Chief Financial Office

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