Posts Tagged ‘octroi’

PM asks states to work for GST implementation

PM Manmohan Singh has asked the states to work towards speedy execution of the new indirect tax system

PM Manmohan Singh has asked the states to work towards speedy execution of the new indirect tax system

Prime Minister Manmohan Singh asked the states to work towards speedy execution of the new indirect tax system as the deadline of April 1, 2010, for introduction of proposed goods and services tax is nearer.

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However, the Centre and states have not yet reached an agreement for goods and services to be included in the GST regime.

Moreover, the decision on a lower charge on food products and exemption to some of them is still to be taken.

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Further, GST will do away with most of central indirect taxes like excise and service tax level and VAT as well as subsume local levies like octroi and purchase tax at the state level.

On the other hand, the Empowered Group of State Finance Ministers decided about the levy having a dual structure, one at the Centre and the other at the state level.

States also decided to have 2 main rates for GST along with a special rate for precious metals but the Centre is yet to take a call on it.

However, many states are not willing to subsume the local levy and also have a fear of losing financial autonomy.

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