GOODS AND SERVICE TAX

The proposed model of GST being considered by the Government includes:

• The Kelkar committee had mooted a new legislation called the Indian Goods and Services Act to replace the Central Excise Act and the service tax levied under the Finance Act.
• Since the deadline for GST (Goods and Service Tax) is 2009-10, the tax may be introduced within the existing framework.
• A draft paper on the proposed outline for GST is likely to be ready within the next one month.
• It is also expected that the GST rate will be at 20 per cent or more.