GST - FM seems to be serious about April 1, 2011 - landmark reform of indirect taxes is well within our reach. It is now for us to convert it into a reality
Legal Corner Icon — the image was hosted by the publisher and was not captured.ADDRESSING the meeting of the Empowered Committee of State Finance Ministers, yesterday, the FM said,
++ I am particularly touched by the gesture made by the Finance Minister of Punjab by agreeing to subsume the Purchase Tax in the overall interest of the GST regime which will benefit the nation as a whole. It is this spirit which will build our economy to a strength unmatched in this region.
++ I am glad to inform you that the Government of India has decided to fully compensate the States for their revenue losses on account of CST reduction during the year 2009-10 and to release the balance outstanding amount to the States immediately.
++ In the year of introduction i.e. 1st April, 2011, the Central Government proposes to keep CGST lower rate for goods at 6% and standard rate at 10%. The services will be charged at 8%. Our request to the States will be to consider keeping the same rates i.e. the lower rate for SGST at 6%, standard rate at 10% and services at 8%. This mutually supportive approach will ensure that we have a single rate for CGST and SGST in the range of 12 to 20% in the first year of GST introduction.