EGoM to submit first draft on GST draft next week

NEW DELHI: The Empowered Committee of State Finance Ministers will submit its first draft to the Centre on the proposed Goods and Services Tax next week, undeterred by speculations that the implementation of the new tax regime may be delayed.

The first discussion paper on Goods and Services Tax (GST) would be submitted to Finance Minister Pranab Mukherjee by the Empowered Committee of State Finance Ministers on November 10 and then placed for public comments.

The preparations for the implementation of the direct tax regime is on, even though there could be delay in its introduction from scheduled date of April 1, 2010.

Even Mukherjee had recently said, "I am trying to stick to the time schedule, but I will not be surprised if there is slippage of a few months."

When asked about the Finance Minister's comments on the issue, Empowered Committee Chairman Asim Dasgupta had said, "Our collective target is April 1, 2010, and on this we will have discussions with the Finance Minister."

Some states like Madhya Pradesh and Gujarat have suggested that there should not be any hasty implementation of GST, which would do away with most of the indirect taxes at the Centre and states.

"There is a case for it getting delayed. There are many issues which have to be solved, many complications which are also there," Madhya Pradesh Finance Minister Raghavji said after a meeting of the Empowered Committee on GST.