Orissa not ready for GST

The Orissa government today said it was not prepared to implement Goods and Services Tax (GST) from April 1 this year and has sought permission from the Centre to re-introduce Purchase Tax on foodgrain.

"We are not at all ready to go for GST system now. We have to make certain preparation before implementing it," Orissa Finance Minister P C Ghadai told reporters here and added that he would intimate the Empowerd Committee in this regard.

The minister would be attending the meeting of the Empowered Committee of the state finance ministers in New Delhi tomorrow.

The Orissa government, which collected about Rs 600 crore as Central Sales Tax at the rate of 2 per cent last fiscal,had got a Rs 324 crore compensation in 2008-09 from the Centre.

To a question, Ghadai said though the state along with others had agreed to go for GST system, Orissa would like the deadline to be extended till April 1, 2011.

The proposed tax will replace excise duty, service tax at the Central level and VAT at states level, besides cess, surcharges and local taxes.

"We will also make a presentation on the Revenue Neutral Rate for the state under GST," Ghadai said.

This apart, the finance minister said Orissa would also demand to have Purchase Tax foodgrain as in the OST (Orissa Sales Tax) regime.

"Since Punjab and Haryana have been allowed to continue with Purchase Tax on foodgrain, Orissa will demand in the same manner," he said.