State finance ministers will meet in Goa for two days between October 29 & 30 to firm up their views on the Centre's revised draft for implementation of the Goods and Services Tax (GST), which has been facing uncertainty for quite some time.
"(We discussed ) how we can converge, what are the points on the basis of which convergence can be achieved. I would have to report to the empowered committee of state finance ministers which is scheduled to meet on October 29 & 30 in Goa," the chairman of state finance ministers' panel, Asim Dasgupta, told PTI after meeting Finance Minister Pranab Mukherjee here today.
Dasgupta, who is West Bengal Finance Minister, further said that he has conveyed to the Union Finance Minister views of the states on the GST related constitution amendment and the revised draft.
The indirect tax regime, GST, is expected to replace excise duty, service tax on the Centre's end and VAT on the states front, besides local levies, cesses and surcharges.
The Centre has so far floated two drafts on Constitution Amendment bill. The first one was rejected by states as it proposed a GST Council, which they alleged gives veto power to Union Finance Minister on taxation issue of states.
The draft had proposed that changes in GST could be brought about by two-thirds majority in the council.
To assuage states, the Centre came out with another draft, which says that changes in GST could only be made when there is complete consensus in the GST council.
This draft is also opposed by the BJP-ruled states, besides Uttar Pradesh and Tamil Nadu. Mukherjee had suggested that the Centre would come out with another draft.
The rollout of GST has missed the deadline of April 1, 2010, and the next slated date of April 1 next year is unlikely to be met.
After the revised draft, Madhya Pradesh, Gujarat and Asim Dasgupta also came out with alternative model on GST.
However, the Centre refused to accept the alternative model of GST, saying it does not allow the essential features of GST to operate.
