With the introduction of proposed Goods and Services Tex (GST) all set to miss the timeframe of April 1, the government on Tuesday expressed a desire to roll it out together with Direct Tax Code (DTC) from 2012-13.
Addressing a seminar, Finance Minister Pranab Mukherjee, however, admitted to some problems in the way of implementing the new indirect-tax system. He said issues relating to constitution amendments remain to be sorted out with states.
Mukherjee said the Centre is willing to consider phased roll out of GST and hence suggested three-year time frame to ultimately roll out one GST rate for all goods and services.
"I also desire to simultaneously roll out GST (along with DTC)," the Finance Minister said at a seminar organised by government auditor Comptroller and Auditor General of India (CAG).
DTC is slated to replace the archaic Income Tax Act, from April 1, 2012.
GST, on the other hand, is expected to replace state-level value-added tax (VAT) and excise duty, as well as services tax on the Centre's front, besides local taxes, cesses and surcharges.
The finance minister said the revised DTC Bill will be tabled in Parliament after standing committee gives its recommendation and hoped that it would be implemented from April 1, 2012, as scheduled.
However, the roll out of GST has already missed the earlier deadline of April 1 this year, while the government's keenness to implement it from April next year is also set to be missed.
The Empowered Committee of state finance ministers has not come out with any consensus on the Centre's proposal on constitution amendment Bill for roll out of GST.
Some states, mainly BJP-ruled and a few others, oppose the Centre's proposal to have a GST council, which will be empowered to effect changes in the indirect-tax system. The council is proposed to be headed by the finance minister and all states are suggested to be its members.
The finance minister said in multi-party, multi-ethnic country like India, divergent views are bound to occur and hoped that consensus would be found in Empowered Committee over the issue.
The last meeting of the committee, held earlier this month, skipped the issue of constitution amendments altogether.
Constitution amendments are required in GST since the Centre cannot impose tax beyond manufacturing, and states cannot levy service tax under the present scheme of things.
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