Public CompanyFM says will not be surprised, if GST implementation delayed
Finance Minister Pranab Mukherjee today did not rule out the possibility of delay in introduction of the Goods and Services Tax (GST) from scheduled date of April 1, 2010.
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"I am trying to stick to the time schedule, but I will not be surprised if there is slippage of a few months," Mukherjee said at the Hindustan Times Leadership Summit here.
The Finance Minister"s comments came on a day when states finance ministers deliberated on various aspects of GST structure at a meeting here.
In fact, Mukherjee also said, "Right now, the empowered committee of state finance ministers is meeting in Delhi. It means that we are seriously trying for convergence of the views, I am going to have meeting on 10th of next month."
He said convergence has been arrived at on many issues and divergence is limited.
"But at the same time, it will take some legislative measures, including the Constitutional amendment, and that has its own space," he said.
When asked about the Finance Minister"s comments on the issue, Empowered Committee Chairman Asim Dasgupta said, "Our collective target is April 1, 2010, and on this we will have discussions with the Finance Minister."
The Empowered Committee has already constituted a working group on suggesting Constitutional amendments and model GST Act.
Some states like Madhya Pradesh and Gujarat have suggested that there should not be any hasty implementation of GST.
"There is a case for it getting delayed. There are many issues which have to be solved, many complications which are also there," Madhya Pradesh Finance Minister Raghavji said after the meeting of the Empowered Committee on GST.
He added that there should not be a hurry in implementing GST as this is a radical reform in the tax structure.
GST, which will subsume excise duty and service tax at the central level and VAT at the state level, is aimed at giving common market structure to India.
For inviting public comments, the Empowered Committee will come out with a discussion paper on GST by November 10.
"We will put our GST discussion paper for wider circulation on November 10 along with that there would be frequently asked questions.The draft was circulated, states have given their views. So we have taken a convergent position now. This would be our first discussion paper. It would be followed by a second discussion paper," Dasgupta said.
However, sources said discussion paper will not contain GST rate or items to be covered under it and may only have structure of how to collect it.