GST may miss April ’12 deadline as states oppose draft legislation

Meanwhile,breaking away from the stand taken by BJP-ruled states,Modi called the tax a “historic reform”. “If GST is implemented,Bihar will be a part of it. There is no question of having our own choice or dislike. This is a historic reform and we believe that the entire country should be part of this reform. It is also a part of the BJP’s manifesto,” he said,adding that though in the short run there may be some revenue losses,GST will help states in the long-term.

He,however,conceded that individual states have problems regarding the structure of GST,such as threshold,rate and compensation. “It is not only BJP-ruled states but also others like Tamil Nadu and Uttar Pradesh that have expressed reservations,” he said.

Flatly ruling out the introduction of the tax from the new date of April 1,2012,Modi said,“It is not possible. Apart from the long drawn process for amending the Constitution,there is no consensus on the political front,” he pointed out.

However,both Modi and Raghavji said that the tax reform has not been put on the backburner though the empowered committee of state finance ministers is currently headless after its former chairman and West Bengal finance minister Asim Dasgupta lost the assembly elections.

“The people of Bihar had given us a mandate. I would not be able to do justice (by serving both posts). When Pranab Mukherjee telephoned,after consulting my colleagues,I refused. I told him that I would cooperate with anybody who become the chairman of the Empowered Committee,” Modi said while commenting on his refusal to head the Empowered Committee. Raghavji said Modi’s decision was a personal one and it was not a party stand to decline the offer. “It was left to Sushil Modi himself,” Raghavji,who is also a senior BJP leader,said.

The Congress-led states,meanwhile,seem to be ready to embrace the GST. “Yes,we are ready (for the GST),” Kerala finance minister K M Mani said.