‘States coming to agreement over GST’

KOLKATA: Empowered Committee of State Finance Ministers chairman Asim Dasgupta said the differences of opinion between states over the proposed goods and services tax have narrowed down considerably. He said he expects the remaining issues to be ironed out during the next GST meeting on October 30.

"We are close to convergence," Mr Dasgupta said on Friday. If the states arrive at a consensus, he said there would be good possibility of the Constitutional Amendment Bill on GST being tabled in the winter session of Parliament.
"The extent of differences over the basic clauses have been narrowed down," Mr Dasgupta said at an interactive session organised by Kolkata's Merchants' Chamber of Commerce. he said the issues related to GST dispute settlement authority and GST council constitution are the only stumbling blocks now.

The empowered committee of state finance ministers had last met on September 20 to discuss the revised draft of the Constitutional Amendment Bill but the BJP-ruled states opposed the draft fearing loss of states' fiscal autonomy . They said GST dispute settlement authority, proposed in the draft, would infringe on their fiscal autonomy . Some states have also opposed the constitution of GST council.

Union finance minister Pranab Mukherjee recently said the GST council would only be a recommendatory body and all decisions will be taken by consensus.

The proposed GST regime from 2011-12 is expected to replace excise duty, service tax on the Centre's side and VAT on the states end, apart from local level levies, cesses and surcharges . The roll-out of GST has missed its initial deadline of April 1, 2010.