Finance Minister on the GST Council
GST Council not to Disturb or Alter Primacy of
Legislature in the area of Taxation: FM
Finance Minister’s Address at meeting with Empowered Committee of
State Finance Ministers
18th August 2010
The Union Finance Minister Shri Pranab Mukherjee had a meeting with the Empowered Committee of State Finance Ministers to finalize the draft Constitutional Amendments on Goods and Services Tax, here today. Addressing the meeting, the Finance Minister emphasized that the primacy of the Legislature in the area of taxation is supreme and inalienable and that the proposed draft on GST did not seek to disturb or alter this in any manner. Highlighting the importance of the GST Council, Shri Mukherjee said that the collective wisdom of the Council would be a valuable resource in benchmarking rates, exemptions, thresholds and other key parameters for both the Centre and the States. Even if its decisions are not binding, they would be useful as guiding principles which could be ignored or violated only in very grave or exceptional circumstances. Regarding States’ concerns about the subsumation of taxes such as entry tax and entertainment tax levied and collected by local bodies, the Finance Minister assured that the Joint Working Group set up to draft the Constitutional Amendments will take care of these issues while preparing the third revised draft.
Following is the text of Finance Minister’s speech delivered at the meeting:
“Let me begin by extending a warm welcome to all of you to this meeting convened to give a shape and form to the Goods and Services Tax. Although the list of things required to be done for the introduction of GST is long, the priority for now is the finalization of draft Constitutional amendments so that the Amendment Bill may be introduced in Parliament during the ongoing monsoon session. This is critical for meeting the April 2011 deadline.
During our last meeting on the 21st of July, 2010 I had shared with you the first draft of the
Legislature in the area of Taxation: FM
Finance Minister’s Address at meeting with Empowered Committee of
State Finance Ministers
18th August 2010
The Union Finance Minister Shri Pranab Mukherjee had a meeting with the Empowered Committee of State Finance Ministers to finalize the draft Constitutional Amendments on Goods and Services Tax, here today. Addressing the meeting, the Finance Minister emphasized that the primacy of the Legislature in the area of taxation is supreme and inalienable and that the proposed draft on GST did not seek to disturb or alter this in any manner. Highlighting the importance of the GST Council, Shri Mukherjee said that the collective wisdom of the Council would be a valuable resource in benchmarking rates, exemptions, thresholds and other key parameters for both the Centre and the States. Even if its decisions are not binding, they would be useful as guiding principles which could be ignored or violated only in very grave or exceptional circumstances. Regarding States’ concerns about the subsumation of taxes such as entry tax and entertainment tax levied and collected by local bodies, the Finance Minister assured that the Joint Working Group set up to draft the Constitutional Amendments will take care of these issues while preparing the third revised draft.
Following is the text of Finance Minister’s speech delivered at the meeting:
“Let me begin by extending a warm welcome to all of you to this meeting convened to give a shape and form to the Goods and Services Tax. Although the list of things required to be done for the introduction of GST is long, the priority for now is the finalization of draft Constitutional amendments so that the Amendment Bill may be introduced in Parliament during the ongoing monsoon session. This is critical for meeting the April 2011 deadline.
During our last meeting on the 21st of July, 2010 I had shared with you the first draft of the