CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. States Obstruct Indian GST

States Obstruct Indian GST

by Mary Swire, Tax-News.com, Hong Kong

11 October 2010


The timetable for the introduction of India’s new goods and services tax (GST) is still under threat from continuing opposition in the states, where loss of fiscal autonomy is an issue still perceived as unresolved.

Madhya Pradesh finance minister Raghavji rejects outright the central government proposals for a national GST and continues to demand discussions based on his own draft GST model.

“We would not allow the Centre to impose sales tax. That’s our domain and would impact our autonomy,” he said.

Opposition has also been voiced in other BJP-ruled states, Uttar Pradesh and Tamil Nadu.

The national GST was first scheduled to be introduced in April 2010, but has had to be postponed several times to due the complexity of the reforms and continued opposition from state governments. In the 2010-11 budget it was announced that the national GST would be rolled out in April 2011. A three-tier rate structure has been proposed: 20% on goods; 16% on services; and 12% on basic items.

The central government has already conceded many points to accommodate state objections, including waiving its right to veto rate-setting proposals agreed by a consensus of states and the centre, and guaranteeing to make up losses of revenue experienced by individual states.

The empowered committee of state finance ministers is expected to meet on October 27 in Goa to try to push forward the GST agenda.

TAGS: tax | sales tax | India | law | goods and services tax (GST) | services

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »