FM introduces Bill in LS for phasing out CST

New Delhi, Mar 9 (UNI) Finance Minister P Chidambaram today introduced in the Lok Sabha a Bill for phasing out Central Sales Tax (CST) in three years to facilitate imposition of Goods and Services Tax (GST) from April 1, 2010.

According to the financial memorandum of the Taxation Laws (Amendment) Bill, 2007, states would be compensated through monetary and non-monetary measures following the phasing out of the CST.

A provision of Rs 2,500 crore has been provided in the 2007-08 Budget. The total revenue loss due to the one per cent reduction in the CST rate in 2007-08 is estimated at Rs 6,350 crore, which would increase in the following years.

UNI