With PM paying more attention, GST deadline may not be missed
New Delhi: The government at the Centre will not leave any stone unturned to achieve its objective of introducing a new tax regime from April next . Prime Minister Narendra Modi held a meeting on Thursday to review the progress made in this regard.
Another indicator was the presentation made to Finance Minister Arun Jaitley and some others in this regard by Vishal Sikka. Chief Executive Officer of Infosys , which has been asked to provide technical support to the project-- Goods and Services tax (GST).
Sikka , who has called the job "a hell of a challenge", has sounded optimistic. So has Jaitley and some of his department officials. The delay may be caused by states on the rate issue.While the Centre was in favour of 16.9 -- 18.9 band, one of the states , Kerala, has already expressed itself in favour of a higher rate-- 20 per cent.
The revenue-neutral rate of 15 or 15.5 per cent has been recommended by the committee headed by financial adviser, Arvind Subramanian.
All the states including Kerala may come around as the government has agreed to compensate the losses which may be suffered by them during next five years due to the implementation of the new scheme.
As provided in the Act, a Council has been set-up to decide the rate which is scheduled to meet for two days, on September 22 and 23.