Goods and Services Tax (GST) was recommended by the Thirteenth Finance Commission. In December, 2009 the Task Force submitted its report (Report of the Task Force on Goods & Services Tax), wherein the 'dual levy' system was recommended.
The Goods and Services Tax (GST) is planned to be implemented from the next financial year. The Finance Minister of India, Pranab Mukherjee on July 21, 2010 proposed for a three-tier structure for the Goods and Services Tax (GST) , the new indirect tax regime.
The three-rate structure of the Goods and Services Tax (GST) - 20 per cent for goods, services will attract 16 per cent and 12 per cent for the essential items. The revenue from the Goods and Services Tax (GST) will be shared equally by both the Central and the State.
Upon implementation of the Goods and Services Tax (GST), the other Central and State taxes like excise, VAT, Service Tax etc. will be revolved thereon.
Source: THE TIMES OF INDIA
