Centre grants Rs 1,133-cr for upgrading states tax system

The Centre today approved a Rs 1,133-crore project for computerisation of states' taxation system, a move that would help them gear up for the roll-out of the goods and services tax.

"The Cabinet today approved a mission mode project for computerisation of commercial taxes administrations of state governments," Information and Broadcasting Minister Ambika Soni told reporters after the meeting.

The project would help the states develop and upgrade their IT systems in their commercial taxes administrations, she said, adding commercial taxes constitute up to two-thirds of a state's revenue.

The focus of the project is to provide an improved set of services to the dealers and better the efficiency of the commercial taxes administrations of states, she further said.

The computerisation of commercial taxes will help the states gear up for the GST roll out, which will require exact details of movement of goods and services since taxes paid on inputs would be reimbursed.

However, GST is all set to be delayed from its scheduled implementation from April 1 due to differences between the Centre and states over various aspects of proposed indirect tax system.