Subsuming purchase tax—a tax levied by some states on the sale of agricultural products—in GST is next on the Centre’s agenda. The finance ministry is hopeful that states will agree to subsume purchase tax in GST after a long drawn battle to keep it out of the purview of the proposed indirect tax regime.

“We have to talk to four states—Punjab, Haryana, Madhya Pradesh and Andhra Pradesh—on purchase tax. We are very hopeful that they will agree to subsume it in GST,” a senior finance ministry official told.