GST unlikely from April 2012

KOLKATA: The government is uncertain about the introduction of goods and services tax from April 1, 2012, as the Bill for bringing in the proposed tax regime could not be tabled in the Parliament so far.

"I have serious doubts whether the deadline of April 1, 2012 can be maintained," finance ministry’s special secretary Sumit Dutt Majumder said on Tuesday.

He said even in the event of the Bill gets passed in the Winter Session of Parliament, there would be some gestation period to make it effective.

"It may be delayed till May or June," the official said in Kolkata at an event organised by Bharat Chamber of Commerce.

"Since it is a transaction-based tax unlike direct tax, it is not necessary to be implemented from the start of a fiscal," said Mr Dutt Majumder said, who is also the chairman of Central Board of Excise and Customs.

He said the effective tax rates under the proposed GST would come down sharply. At present, a consumer ends up paying around 30% tax on a single purchase of goods as taxes levied as various stages of production.

"World over, GST rates are typically between 16-20%. We are yet to finalise the rates here," the official said.

The implementation of GST has been delayed for years owing to differences between the Centre and some states over the proposed structure.