Industry & Economy
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Taxation
`Notification on uniform 2 pc CST to be issued soon'
Our Bureau
New Delhi
,
May 13
THE Government has decided to issue a notification for a uniform Central sales tax (CST) of two per cent with effect from April next year and complete classification of items for uniform value-added tax by July this year, said Mr Ramesh Chandra, Member Secretary, Empowered Committee of State Finance Ministers.
At a seminar on `State VAT for a Common Indian Market', organised jointly by the Associated Chambers of Commerce and Industry of India (Assocham) and the Gurgaon Chamber of Commerce and Industry, Mr Chandra said a formal notification to this effect will be issued by May 26. He was hopeful that the non-VAT States would also opt for the tax soon.
He said CST would be brought down further to one per cent with effect from April 2007. Thereafter, the Government will have to try and move towards abolishing CST. However, he did not specify a particular time limit for this.
He also announced that the distortions in the current VAT slabs would be narrowed down from July this year, for which the committee will fix a series of meetings.
Mr Bharat Goenka, Managing Director, Tally Solutions Pvt Ltd, said 45 days had passed since VAT had come and that the trading community was still not very clear on the fallout of the new taxation system.
He said that, in the first five to six months, consumers will notice a moderate price hike in some commodities; subsequently, when the system is uniformly adopted by the entire federal structure, the prices would start falling.
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