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By ENS Economic Bureau - NEW DELHI
15th February 2013 08:42 AM
State finance ministers on Thursday decided to prepare a model legislation and set up three committees to sort out various issues for smooth roll-out of the Goods and Services Tax (GST).
The decision was taken at a meeting between Union Finance Minister P Chidambaram and state FMs here on Thursday. The Centre also decided to give ` 19,000 crore to states as compensation for Central Sales Tax (CST) for 2010-11.
Chairman of the Empowered Committee of State Finance Ministers, Sushil Modi said that there was a broad consensus on 50% CST compensation for FY ’13. However, states could consider increasing CST to 4% if compensation was not increased, he added.
On whether GST can be rolled out from April 1, 2014, Madhya Pradesh Finance Minister Raghavji said: “I don’t think so. Autonomy is the main issue. By Constitution, sales tax has been assigned to the states. Sales tax should be levied by states ...They (Centre) are not prepared to give 100 per cent compensation but states insisted on 100 per cent compensation.”
Gujarat Energy Minister Saurabh Patel said that there had been no progress in talks as the CST compensation issue remained unresolved.
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Comments(1)
It appears that while Mr Chidambaram is trying to meet the demands of the States to allow the introduction of GST, the BJP administered States will stall the issue till after the next elections to take the credit for the same. These negative tactics by the BJP in the Parliament and in the States on various issues show their total disregard on not working in the interest of the country's economy. The should show more bi - partisanship on issues of national interest and their maturity on economic policies.
Posted by S.N.Iyer at 02/15/2013 09:56 Reply to this Report abuse