LS PASSES BILL TO PHASE OUT CST IN FOUR STAGES

The Lok Sabha (LS) has passed the Taxation Laws (Amendment) Bill, which aims at phasing out Central Sales Tax (CST) in four stages to eliminate it completely in 3 years. Abolition of CST will pave the way for an integrated Goods and Services Tax (GST), which will be introduced by April 1, 2010. The bill seeks to amend the CST Act, 1956 where by CST is proposed to be reduced by 1% to 3% from April 1 this year. The package for compensation to states for revenue loss on this account shall consist of non monetary as well as monetary measures.