By- Pratik Dutta | Date- April 16, 2011 | Place- Kolkata
In spite of a four-year discussion, the central government and the states have failed to reach an agreement on the implementation of the Goods and Services Tax (GST), a top union finance ministry official confirmed in Kolkata.
Under the concept of the Goods and Services Tax, the age old Indian Service Tax, Excise and Sales Tax are set to be replaced by this single tax entity.
It is being claimed by the Finance ministry that the implementation of the GST would enable a uniform goods and services tax administration across the country by uniting all central and state taxes. However the conflict between the Centre and the state government regarding this bill has put a question mark on the implementation of the bill.
It is to be mentioned that the conflict between the Centre and the state government has been majorly due to two issues, the number of goods to be exempted from the tax and the threshold level of the tax.
16 states have agreed with the Goods and Services Tax so far and more are expected to provide an approval nod once the pressure from the Central Government increases to implement this new tax system.