States will meet here tomorrow to discuss the fine contours of the Goods and Services Tax (GST) as the scheduled date for its introduction draws closer.
The new tax regime that will do away with most of the indirect tax levies like excise and service tax at the Centre and Octroi and VAT at the state level is slated to be introduced on April 1, 2010.
However, there are apprehensions that its introduction could be delayed. States such as Madhya Pradesh, Tamil Nadu, Gujarat and Rajasthan are demanding that the introduction of GST be postponed as there is no consensus on the rates.
The Empowered Committee of state finance ministers meet comes in the backdrop of release of a discussion paper on GST released on November 10. It proposes replacing central levies like excise duty, service tax, special additional duty, countervailing duty with GST.
State levies like VAT, sales tax, entry tax would be subsumed under the GST. And, central and state cesses and surcharges would be out once the new regime comes into effect.
The Empowered Committee Chairman Asim Dasgupta has said the GST would have four slabs and these are likely to be unveiled within 15 days.
"It (GST) will have four slabs. I hope the rates will be released in the next 15 days," Dasgupta said.