The Hindu Business Line : GST roadmap within months: Chidambaram

THE FINANCE MINISTER, Mr P. Chidambaram, with the CII President, Mr Y.C. Deveshwar, at the CII National Council meeting in the Capital on Monday. — Ramesh Sharma

New Delhi , March 20

The Finance Minister, Mr P Chidambaram, today said that Indian industry would be consulted before a roadmap for adoption of a goods and services tax (GST) from April 1, 2010 is finalised.

The roadmap, which would spell out the milestones and timelines for GST implementation, would be ready in a couple of months.

"GST is an important goal. I will consult industry. We also need broad national consensus and the roadmap would be finalised after consultation with State Finance Ministers," Mr Chidambaram said at a meeting of the CII's national council.

He added that a four-year period to prepare and introduce GST was ambitious as Constitutional amendments are required and laws have to be passed. He expressed confidence that GST would be introduced from April 1, 2010. Mr Chidambaram also said that a draft paper on GST, prepared by his Advisor, Dr Parthasarathi Shome, was before him and would receive his attention in the coming days.

While refraining from predicting the GST rate that would be adopted in the country, the Finance Minister said that it is 14-16 per cent the world over.

Tightening liquidity

On the issue of tightening liquidity, which was raised by the CII President, Mr Y.C. Deveshwar, the Finance Minister said that the liquidity situation has changed for the better and that the Reserve Bank of India Governor, Dr Y.V. Reddy, had assured him that ample liquidity would be provided to all sectors.

"For the first time after three months, the RBI took money through reverse repo rather than giving money through repo (operations)," he added.

The Finance Minister is also expected to discuss the liquidity issue with Chairmen of commercial banks on March 23.

Responding to the CII President's concern over the absence of high-quality physical infrastructure in the country, Mr Chidambaram said that there was no point "moaning" about infrastructure. "You (private sector) must get out and seize the opportunities for building infrastructure (rather than relying on Government departments)."