GST Newsletter 18th October
State FMs to meet in Goa on Oct 29 & 30
During meeting of the Empowered Committee of the State Finance Ministers (‘the Empowered Committee’) in Goa some of the States suggested phased approach of Constitutional amendments, the others mainly ruled by Congress suggested amendment immediately.
The States have made a fresh demand on the Central Government to continue with Central Sales Tax (‘CST’) in the first few years of the GST regime. Since majority of Indirect Taxes (including CST) are proposed to be subsumed under GST, most of the States have proposed to continue with CST in the form of a transaction fee of 1-2%. Currently, CST is levied on sale transactions entailing inter-State movement of goods and it is collected by the State from where the movement of goods commences.
The Union Finance Minister, Mr. Pranab Mukherjee has stated that he has tried his best to introduce the GST Constitutional Amendment Bill (‘the Bill’) in the monsoon session of Parliament but for certain reasons beyond his control, the Bill could not be tabled and accordingly it may not be possible to introduce GST from April 1, 2011