The empowered committee of states today exuded confidence that Goods and Services Tax (GST), proposed to replace most indirect taxes in the country, will be implemented from next fiscal, a new deadline after earlier target was missed.
"That is our target and we will make all efforts to meet the target... We are confident," committee Chairman Asim Dasgupta told reporters after meeting Finance Minister Pranab Mukherjee.
The earlier deadline of introducing GST by this fiscal could not be adhered to after the states and the Centre could not agree to its structure.
While states propose two main rates for goods and one rate for services, the Centre pitched for one rate for goods and services.
In the Budget, Mukherjee had also said, "It will be my earnest endeavour to introduce GST along with DTC in April, 2011."
The committee, comprising state finance ministers, would now meet on May 21 on the issue of GST.
"The next meeting of the empowered committee of state finance ministers has been convened on May 21. As a preparation for that meeting, we needed to have some interaction with the Union Finance Minister which we did today," Dasgupta said.
He said the meeting next Friday will discuss relevant matters for implementation of GST.
When asked whether the meeting will take up the issue of Rs 50,000 crore for states to meet losses due to switching over to GST as recommended by the 13th Finance Commission, he said all relevant issues will be discussed.
GST is expected to replace excise, service tax at the level of Centre and VAT and other local levies at states end, besides cesses and surcharges.
