Good progress in talks with states on GST: CBEC

As deadline draws closer for implementation of Goods and Services Tax (GST), the Centre today said discussions on various issues have made "considerable progress".

The Centre has been holding regular discussions with states on GST, which is to be implemented by April 1, 2010. Some states were apprehensive that GST will do away with their fiscal autonomy.

"We are almost having meetings on a daily basis...To bring all states together and make them agree to GST was a difficult task. Some states had apprehensions. The process has made considerable progress," Central Board of Excise and Customs (CBEC) Chairman V Sridhar today said.

He said many states are protective about their autonomy so far as taxes levied by them is concerned.

After the Empowered Group of state finance ministers met on GST last week, Madhya Pradesh Finance Minister had expressed apprehensions that the new tax system would take away the states' rights to tinker with rates.

The GST will subsume the central indirect tax levies like excise and service tax and a host of state taxes like VAT, octroi and purchase tax.

The structure would be a dual structure--one at the Centre and the other at the state-level.

States have already agreed to have two rates of taxes, with one standard rate and the other lower rate for essential goods. The rates, however, have yet not been finalised.