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| States skipping GST will lose more revenue: Bhide |
| Press Trust of India / Hyderabad Nov 13, 2009, 19:44 IST |
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States that do not want to come under the proposed Goods and Services Tax (GST) regime will tend to lose more in terms of revenue sharing, Revenue Secretary P V Bhide said today.
He said the finance ministry has been coordinating with all state governments to arrive a consensus on GST. His remarks come after the Haryana and Orissa governments requested the Centre to defer introduction of GST.
Bhide, who participated in a discussion on GST organised by the Federation of Andhra Pradesh Chambers of Commerce and Industry here, said the central government is organising various programmes to make aware traders and the states about the advantages of GST.
"I don't think it is so simple. No state can opt out of an integrated system. We are trying to convince all the states by explaining the advantages," Bhide said.
He also said the list of items that would be exempted from GST would be minimal. There are 330 items from the Centrals list and 190 from the states list, under the purview of GST exemption.
On November 10, the states released a discussion paper prepared by the Empowered Committee of their finance ministers which said the GST should subsume most central indirect levies like excise and service tax as well as state taxes like VAT, making it easier for industry.
According to Sumit Dutt Majumdar, special secretary, MoF, the ministry was developing an IT-based network for the inter -state supplies of goods -- Integrated GST (IGST) and it would be integrated to the networks of all the states.
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