Fri, 09 Nov 2012 08:45:00 GMT | By ANI

Major changes soon in taxation: Finance Minister

New Delhi: Union Finance Minister P Chidambaram on Thursday said that the Government will soon usher a major change in the taxation system to create a common market for the country.

Major changes in the taxation: Finance Minister (© Reuters)

Speaking to reporters after a meeting with the Empowered Committee of State Finance Ministers, Chidambaram said: "We are working on the GST (Goods and Services Tax) that, if implemented, will replace all other indirect taxes levied on goods and services."

"When and how GST should come in to force, its really a matter for the states to decide, centre is mere a facilitator. All the ministers supported the GST but they want to discuss the design of the GST," added Chidambaram. "Two committees will be formed. One will address the compensation and the second will work on design of the GST and till December 31 both the committees will submit their report.

Bihar Deputy Chief Minister Sushil Kumar Modi has been authorized to form the committees," noted Chidambaram. He also mentioned that the various states want the central government to resolve the Central Sales Tax (CST) compensation issue before moving ahead with the rollout of the Goods and Service Tax (GST) regime.

The Empowered Committee of State Finance Ministers, chaired by Bihar Deputy Chief Minister Sushil Modi, on Thursday discussed the CST compensation issue and setting up of the dispute settlement authority.

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