'Robust IT infra at Centre, States needed for effective GST'

MUMBAI: A robust IT (information technology) infrastructure at both the Central and State Government levels will help in implementing the proposed Goods and Services Tax ( GST) regime in a more effective manner, a senior tax official said.

"There is a need for creation of a robust IT infrastructure at both the Centre and State levels for implementing the GST regime," Jawaharlal Nehru Port Trust's Commissioner of Customs (Exports), Sushil Kumar Solanki, said here at a conference.

A good IT infrastructure in place would help in implementing the GST regime in an effective manner, he said.

The GST, which is a part of the Government's tax reform agenda, is expected to be implemented from April 1 next year. All central and state taxes will be merged into GST once it comes into effect.

Presently, there are parallel systems of indirect taxation at the Central and State levels.

"The GST regime will benefit the trade by reducing multiplicity of taxes and mitigation of cascading/double taxation. It will also help in development of a common national market and provide a simpler tax regime," he said.

The Central and State Governments must be empowered to tax supply of goods and services, he said.

"There is a need for a constitutional amendment for subsuming of taxes within the GST," Solanki said.