On Monday, the Union Government demands a single tax slab under the proposed goods and services tax (GST) regime.It has been declared on Monday on thefinance ministry’s website.

It also demands alcohol, petroleum, natural gas and electricity to be brought into its tax base.

The ministry’s paper declares a list of comments on the proposals unveiled by the states in their November blueprint.

The paper showed significant differences between the Centre and the states over the proposed GST architecture, starting with the number of tax slabs.

New Delhi’s position is far closer than that of the states to a model advocated by a task force set up by the 13th Finance Commission (TFC).

Beside advocating a single tax slab, that keeps down the tax rate, TFC’s task force has also suggested bringing in petroleum products, alcohol, electricity, purchase tax into the GST tax base. 

TFC has also suggested 12% as the revenue-neutral rate for GST, which has been rejected by the states.

The paper, however, sheds no light on bringing stamp duty on real estate into the GST architecture, a move recommended by TFC’s task force.

P. Chidambaram, the finance minister,said on 1 April 2010 that "it would be the deadline to roll out GST. Since then, finance minister Pranab Mukherjee has indicated the deadline cannot be met as there is no consensus between the Centre and the states on GST architecture."

Source: Livemint