The new date for the implementation of the Goods and Services Tax (GST), which will replace most of the indirect taxes at the central and the state level, will be announced in April after a meeting between the states and the Union government.
"Because of the difficulties connected with the passing of the required constitutional amendment bill in the budget session, it will not be practical to introduce GST on April 1, 2010," Empowered Committee of States Finance Ministers Chairman Asim Dasgpta told reporters here.
The GST will do away with most of the indirect taxes at the Centre like excise and service tax and at the states like VAT and octroi. The tax was scheduled to be implemented from April 1 this year.
However, due to lack of convergence among the states regarding the structure and rated of GST, the introduction has been delayed.
"The new date for introduction the Union Finance Minister suggested would be settled in the month of April," Dasgupta said.
With regard to Central Sales Tax compensation, Dasgupta said that the finance minister has agreed to give Rs 9,676 crore, or about 68 per cent of the total revenue loss, to the states.
CST, a levy on inter-state transfer of goods was reduced to 2 per cent from 4 per cent with the aim of removing it completely at the time of the introduction of GST.
