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Delhi Deputy Chief Minister Manish Sisodia on Monday said the State Finance Ministers' met to avoid confusion about the rates at which indirect taxes would be levied and discussed the accountability of the Goods and Services Tax Network (GSTN).
Stating that this was the first meeting of Empowered Committee after the passage of GST Bill, Sisodia said all the Finance ministers are now concerned about the GST and company, which will streamline the tax system of the nation.
"Until now, every state used to run their company on their own terms and run them accordingly. But from now onwards there will be one company that will overview the taxes, especially the GST, in the entire country," Sisodia said.
"Everybody was concerned about the rates and the sharing of different states, its accountability and deliverables. All these things should be clear. There should be no confusion in future about what GST will do and not and what will be its accountability.
Sisodia further said there was also a discussion on the financial model of GST.
"Everybody agreed that both the Centre and states should also contribute," he said, adding everybody was of the opinion that the states should be charged at the same rate at which the loans would be taken from banks.
The GST Constitutional Amendment Bill was passed by Parliament earlier this month and so far ten states - Assam, Bihar, Jharkhand, Delhi, Chhattisgarh, Himachal Pradesh, Telangana, Maharashtra, Nagaland and Gujarat - have ratified the Bill. A constitutional amendment requires ratification by at least 50 per cent of the states.
The Constitutional Amendment Bill did not have the GST rate and the GST Council, which will have representation from both the Centre and states, will now work out a rate.
The subsequent legislations Central GST (CGST) and Integrated GST (IGST) - would mention the GST rate.
