Thiruvananthapuram, May 5 (UNI) The final version of the Goods and Service Tax (GST) will be ready in a few months once the Finance Ministry gives its response to the GST model and road map submitted to it, Chairman of the Empowered Committee Asim Das Gupta said.
''The empowered committee has submitted the GST model and road map to the Finance Ministry in April. Once we get the response, the final version of the model will be ready,'' he told reporters after the committee meeting here.
With the GST coming into force in 2010, the Central Sales Tax would be phased out.
''We hope the CST will be further reduced from the existing three per cent to two per cent,'' he said.
Mr Gupta also said a formula on CST compensation was worked out at the meeting and would be submitted to the government.
''The states which will lose tax revenue due to progressive reduction of CST will have to be compensated for,'' he said.
Regarding a harmonised system of categorisation of commodities, the empowered committee had agreed in-principle to the Centre for Taxation Studies' Report - Harmonised System of Nomenclature. It would be submitted to the government, he added.
The Empowered Committee also reviewed the Taxation Information Exchange System, Mr Gupta said and hoped that within a period of four months, a good part of the target would be met.
The committee also reviewed the revenue of all states and it was seen that the VAT revenue had doubled.
It had increased nearly 24 per cent This was just 12 per cent under the Sales Tax regime.
Finance Ministers from nine states and finance secretaries from almost all the states participated in the meeting held here.
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