Pranab: Will compensate for GST

Jul 25, 2010 - Age Correspondent |

New Delhi

Union finance minister Pranab Mukherjee assured the states that they will be fully compensated by the government on possible losses arising from implementation of the goods and services tax (GST).

“No state would be allowed to suffer any loss and would be fully compensated by the Central government,” said the FM at a meeting of the National Development Council.
As part of the tax reform, the government proposes to introduce GST, which will subsume levies like excise, service tax, VAT and local levies like octroi etc from April 1, 2011. The 13th Finance Commission it its recommendations had asked the Centre to set aside Rs 50,000 crores to compensate the states for the possible revenue loss from GST rollout.
The FM had earlier this week proposed a three-tier structure for the new indirect tax regime.

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