New Delhi: State finance ministers decided to prepare a model legislation and set up three committees to sort out various issues for smooth roll-out of the Goods and Services Tax (GST). (Agencies)
"There was a broad consensus ... Three committees were notified today to go into the details ..," the Chairman of Empowered Committee of State Finance Ministers, Sushil Modi, said after the meeting with Union Finance Minister P Chidambaram.
The state finance ministers decided to set up panels to address issues such as Integrated GST (IGST) and VAT on imports. The committees would also consider dual control threshold and exemptions, and revenue neutral rate and place of supply rules, Modi said.
"Besides, the Empowered Committee will draft a model legislation, as after the Constitution is amended we require a model bill which has to be passed by every state legislature," Modi said.
On providing compensation to states for reducing central sales tax (CST) rate, Modi said that Chidambaram will "make provisions in this budget for providing full compensation for 2010-11".
"Out of total 2010-11 compensation, Rs 7,000 crore has already been paid so whatever is remaining Finance Minister will provide in the Budget," he said.
However, there appeared to be differences among states on the issues of autonomy and CST compensation.
On whether GST can be rolled out from April 1, 2014, Madhya Pradesh Finance Minister Raghavji said: "I don't think so. Autonomy is the main issue. By Constitution, sales tax has been assigned to the states. Sales tax should be levied by states.
New Delhi: State finance ministers decided to prepare a model legislation and set up three committees to sort out various issues for smooth roll-out of the Goods and Services Tax (GST).