Tuesday, June 2, 2009

GST: Traders pin hopes on Budget

Traders are placing great hopes that the next Budget will have some concrete measures on implementation of Goods and Services Tax but some experts doubt the new tax may take more time than expected.

The GST is proposed to be implemented from April 1, 2010, but its rates have not been decided yet. GST will replace excise duty, service tax at the Centre and VAT at state-level.

Confederation of All India Traders General Secretary Praveen Khandelwal said, "The draft of GST was to be issued in 2007. Now, with a stable government in place at the Centre, the process of implementation of GST may move fast."

Tax expert and chartered accountant Amarnath Singla said, "Finance Minister Pranab Mukherjee may announce plans about GST in the Budget to be presented in July."

On tax rates, he said that GST can be implemented in four slabs. These could be zero per cent, 4 per cent, 20 per cent and a uniform rate of 15-16 per cent.

Assocham president Sajjan Jindal said, "We have asked the government to implement GST as soon as possible, as it is big step towards tax reforms. But, this is a complex tax system and its complete implementation may take time."

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