GST from April 1 not feasible: FM

The state finance ministers have stated that the proposed goods and services tax, which will replace most of the indirect taxes at the central and the state levels, cannot be implemented from April as envisaged, Parliament was informed on Tuesday.

Finance Minister Pranab Mukherjee said 'yes' in a written reply to the Rajya Sabha when asked whether the chairman of the Empowered Committee of the State Finance Minister has expressed the opinion that it was not feasibile to implement GST from April 1, 2010.

Mukherjee would meet state finance ministers in early April to the discuss implementation of the GST.

"A meeting was held with the state finance ministers on January 28, 2010. It was decided that discussions on GST will be continued in another meeting in early April, 2010," he said.

He further said a joint working group comprising officers of the central government, a few state governments and the empowered committee of the state finance ministers, has been constituted to prepare drafts of the constitutional amendment bill, central GST legislation, model state GST legislation and related rules.

Replying to another query, minister of state for finance S S Palanimanickam said the features finalised so far include the dual GST model, subsuming central excise, service tax, value added tax, among others, into the proposed GST.