Pranab confident of implementing GST from next fiscal

Finance Minister Pranab Mukherjee today expressed confidence that the government can implement the Goods and Services Tax (GST) from April 1, 2010, with the support of all political parties.

"I do not find any reason (why GST may not meet the deadline of April 1, 2010) if each and every section of the House feels yes it is worthwhile doing it," Mukherjee said today participating in a debate on the General Budget.

The proposed GST will replace VAT, excise duty and service tax. There is an empowered group of state finance ministers who are working in close cooperation and Mukherjee is in touch with them.

"If BJP state finance ministers, if Left state finance ministers, if other parties' state finance ministers, if the honorable members belonging to those parties in this House feel then what will prevent, we will be able to do it," he said.

Yesterday in Lok Sabha, he said the introduction of the GST in 2010-11 is expected to bring a sustained rise in the tax revenue and asked for the cooperation of all.

According to official estimates, the implementation of GST could generate additional revenue of over Rs 72,000 crore annually  that could be utilised by the government to meet financial requirements needed for flagship programmes of the UPA government.