Need for 'Centre-State' efforts in implementing GST: Sunil Tatkare

To help ensure a smooth passage for the biggest reform in the Indirect Tax System,  Maharashtra’s Finance Minister, Sunil Tatkare was all positive and cooperative in agreeing to the draft constitutional amendment pertaining to Goods and Services Tax (GST) proposed by the Centre.  He urged all the States’ to come forward and positively respond to the ongoing issues facing the proposed GST Bill.  He said that this issue could be resolved through the consensus of all the States. 

Shri Tatkare was speaking at The Empowered Meeting of State Finance Ministers on Wednesday, August 18 at Vigyan Bhavan.  Union Finance Minister, Pranab Mukherjee presided over the meeting.  Prior to this meeting, all States’ Finance Ministers had already gathered at Hotel Ashoka to deliberate on GST.  This meeting was coordinated by the Chairman of Empowered Committee, Dr. Asim Dasgupta.  In this meeting, Tatkare approached and persuaded all the Finance Ministers’ to look at this issue positively and cooperate with the Centre in implementing GST urging them to bury the dug holes (differences) in the matter, as it has come an extensive way.  The minister assured that the views of every state would be given due weightage in deciding the Tax policy. The implementation of GST would definitely bring about overall progress and development in the country, expressed the finance Minister.

Shri Tatkare expressed his view that, the proposed amendments have ensured fiscal autonomy to the State.  The Centre has given up the proposed Veto Power, allowing the states to manage the State’s Administration through joint efforts.  Prior to today’s meeting, Tatkare informed that, he had already proposed the rate structure under GST.  He further said that, the combined rate structure should not exceed 20%.  Of which, the component of the same should be 11% by the states and 9% by the Centre.  Shri Tatkare had also stressed for a single authority rather than dual authority proposed by the Centre. The trade and industry expects one single authority for GST administration for one dealer to avoid any further hassles, informed Tatkare. 

For this he urged, that the Union and State officials should formulate common business process at the earliest. 

Concluding his speech, the finance minister said that all the stakeholders expect the new tax system would help overcome the ills of the existing system, and the nation is eagerly awaiting this roll out package.  With this he hoped that all pending issues will be resolved and the GST implementation on April 1, 2011 would be reality.  Principal Secretary, Finance, V.K.Kanade and Commissioner of Sales Tax, Sanjay Bhatia were also present in the meeting.