The finance ministry has set up a five-member task force to frame rules for the proposed Goods and Service Tax (GST). A bill for the GST is likely to be finalised soon. It is likely to be introduced in the monsoon session of Parliament after the states’ concurrence. Once the legislative amendments are passed by Parliament and assemblies, the Centre will frame the new Act, which will govern the indirect tax structure.
The Central Board of Excise and Customs (CBEC) has been entrusted with the task of framing the GST Act ahead of the winter session of Parliament. The GST proposes tax reforms that will replace most indirect taxes such as central excise, service tax, VAT, purchase tax and all surcharges and cess. A technology sub-committee, headed by Nandan Nilekani, is already working on the IT framework that is expected to be operational before GST is rolled out in April 2011.
Nilekani had given a presentation on the proposed IT framework to FM last month. IT officials from seven states and a senior official from CBEC are members of this sub-committee.