PM urges States to back Govt on GST implementation

New Delhi, Jul 24: Emphasising that the implementation of the GST (Goods and Services Tax) is important for resource mobilisation, the Prime Minister Manmohan Singh has urged the states to back the government's efforts towards the tax reform.

"Reform of tax structure and tax administration is another important step in resource mobilisation. The implementation of the the GST (Goods and Services Tax) is especially important in this context and I would urge chief ministers to give full support to the effort to implement GST with effect from April 1, 2011," the Prime Minister said in his inaugural address to the 55th meeting of the National Development Council (NDC).

The meeting was attended by almost all the chief ministers of the states, as well as key cabinet miniters and Planning Commission Deputy chairman Montek Singh Ahluwalia.

The implementation of GST involves passage of a constitutional amendment by a two thirds majority of both houses of parliament.

This has to be followed by its ratification by at least half the states.

Earlier, Finance Minister Pranab Mukherjee had appealed for political consensus among all the states to make this a reality.

OneIndia News