First Discussion Paper on Goods and Services Tax in India
First Discussion Paper On Goods and Services Tax In India
The Empowered Committee Of State Finance Ministers
New Delhi November 10 , 2009
First Discussion Paper On Goods and Services Tax In India
The Empowered Committee Of State Finance Ministers
New Delhi November 10 , 2009
Contents
Pages Foreword Introduction Preparation for GST Goods & Services Tax Model for India Annexure on Frequently Asked Questions and Answers on GST i-iv 1-11 11-13 13-27 29-53
Foreword If the Value Added Tax (VAT) is considered to be a major improvement over the pre-existing Central excise duty at the national level and the sales tax system at the State level, then the Goods and Services Tax (GST) will be a further significant breakthrough - the next logical step - towards a comprehensive indirect tax reform in the country. Keeping this overall objective in view, an announcement was made by Shri P. Chidambaram, the then Union Finance Minister in the Central Budget (2007-2008) to the effect that GST would be introduced from April 1, 2010 and that the Empowered Committee of State Finance Ministers, on his request, would work with the Central Government to prepare a road map for introduction of GST in India. After this announcement, the Empowered Committee of State Finance Ministers decided to set up a Joint Working Group (May 10, 2007), with the then Adviser to the Union Finance Minister and the Member-Secretary of Empowered Committee as Co-convenors and the concerned Joint Secretaries of the Department of Revenue of Union Finance Ministry and all Finance Secretaries of the States as its members. This Joint Working Group, after intensive internal discussions as i well as interaction with experts and representatives of Chambers of Commerce and Industry, submitted its report to the Empowered Committee (November 19, 2007). This report was then discussed in detail in the meeting of Empowered Committee (November 28, 2007). On the basis of this discussion and written
The Empowered Committee Of State Finance Ministers
New Delhi November 10 , 2009
First Discussion Paper On Goods and Services Tax In India
The Empowered Committee Of State Finance Ministers
New Delhi November 10 , 2009
Contents
Pages Foreword Introduction Preparation for GST Goods & Services Tax Model for India Annexure on Frequently Asked Questions and Answers on GST i-iv 1-11 11-13 13-27 29-53
Foreword If the Value Added Tax (VAT) is considered to be a major improvement over the pre-existing Central excise duty at the national level and the sales tax system at the State level, then the Goods and Services Tax (GST) will be a further significant breakthrough - the next logical step - towards a comprehensive indirect tax reform in the country. Keeping this overall objective in view, an announcement was made by Shri P. Chidambaram, the then Union Finance Minister in the Central Budget (2007-2008) to the effect that GST would be introduced from April 1, 2010 and that the Empowered Committee of State Finance Ministers, on his request, would work with the Central Government to prepare a road map for introduction of GST in India. After this announcement, the Empowered Committee of State Finance Ministers decided to set up a Joint Working Group (May 10, 2007), with the then Adviser to the Union Finance Minister and the Member-Secretary of Empowered Committee as Co-convenors and the concerned Joint Secretaries of the Department of Revenue of Union Finance Ministry and all Finance Secretaries of the States as its members. This Joint Working Group, after intensive internal discussions as i well as interaction with experts and representatives of Chambers of Commerce and Industry, submitted its report to the Empowered Committee (November 19, 2007). This report was then discussed in detail in the meeting of Empowered Committee (November 28, 2007). On the basis of this discussion and written