GST panel to examine duties on alcohol

NEW DELHI: After duty cut on imported wine, beer and spirits, the joint working group on Goods and Services Tax (GST) has been asked to recommend a new duty structure on alcohol and petroleum products besides other non-VAT items and exempted goods and services.

"The working group on GST will consider how exempted goods and services and non-VAT items such as alcohol and petroleum products might be treated under the GST regime, scheduled to be implemented from April 1, 2010," a senior Finance Ministry official said.

The group, which is meeting here tomorrow, is likely to submit a report on the framework of GST within four months to the Empowered Committee of State Finance Ministers.

The Panel, which comprises Adviser to Finance Minister Parthasarathi Shome and state finance secretaries, has been asked to work out a model and recommend the division of power for levy, collection and appropriation of revenue between the Centre and the states.

The group has been asked to keep the interests of North-Eastern states, agriculture, consumers, trade and industry in mind while making its recommendations.

"The panel has been asked to design the GST in such a way that it is revenue fair with ensure sufficient growth of revenue to the Centre and every state," said the official.

Finance Minister P Chidambaram had earlier said that empowered committee of state finance ministers, which has successfully implemented the VAT, will work in co-ordination with the Centre to implement GST from April 1, 2010.

The GST panel is also expected to recommend models which ensure avoidance of double taxation and ensure that suggested model takes into account the problems faced during inter-state transactions.