GST might come into effect from April 1, 2013 | SupportBiz

Finance Forum

GST might come into effect from April 1, 2013

The much-awaited unified Goods and Services Tax (GST) is likely to come into effect from April 1, 2013, as the Centre is open to the concerns of the states, Sushil Modi, Chairman of Empowered Committee of State Finance Ministers, stated on April 18.

"The Finance Minister Pranab Mukherjee is very flexible to accommodate view of the state governments," Modi, who is also Deputy Chief Minister of Bihar, told reporters.

A key concern of states is the autonomy to levy taxes. The states also have problems with the dispute regulation panel.

Modi indicated that the central government was willing to consider the states demand on the issue of compensation for reduction in central sales tax.

"You require flexibility, and now I am finding that there is a flexibility in the attitude of the Finance Minister and in the State Council," he said.

Modi's statement assumes significance as the Bharatiya Janata Party (BJP) ruled states have so far been opposing the new tax regime.