New GST will Apply in India in April 2011

NEW DELHI: It is now almost certain that the goods and services tax (GST), which will replace the existing tax, service tax and central sales tax includes will be in place from April 1 next year.



Finance Pranab Mukherjee has suggested a three-year timeline for full implementation of VAT. In the first year, there will be a double charge VAT. The central GST is proposed at 6% for essential commodities and 10% for standard rate for other goods. States are expected to introduce similar fees. As a result of the combined GST on goods from 12% to 20%. Service tax would be charged at 8% in the center, and a corresponding duty of states.

Almost all states have approved the proposed GST implementation of 1 April 2011. The new indirect tax reform is to streamline the transport of goods and services across India with a simple tax system.

FM has also proposed a threshold for the composition of small retailers in a consistent RS 50 lakh to RS one crore revenue per year for CGSL and SGST. This, he said, would result in a significant simplification for small traders, so that compliance is easy and assured.The government hopes to introduce legislation to introduce GST in the parliament session, which begins Monday, said officials.

Mitra safety in connection with the introduction of two bills came one day before the Empowered Committee of State Finance Ministers meet here to discuss the issue inc. Finance Pranab Mukherjee is scheduled to meet the state finance ministers on Tuesday.

At GST, we have a meeting with the government committee on Wednesday. The basic trend is the I-T system. Nandan Nilekani (the UIDAI President) will make a presentation. And we need major decision on a single portal on the PAN-based Registration, "Mitra said.The government Tuesday said the direct tax code (DTC) Bill and a constitutional amendment bill to implement the goods and services tax (GST) is likely to be introduced In the monsoon session beginning next week.

Mukherjee is scheduled to meet the state finance ministers on Wednesday to discuss the constitutional changes necessary to roll out the GST to replace the duty and service tax at central level and tax at state level, in addition to quotas and other local taxes.