Modi moving to Plan panel

Arbind Modi,chairman of the thirteenth Finance Commission taskforce on Goods and Services Tax and a key figure...

Arbind Modi,chairman of the thirteenth Finance Commission taskforce on Goods and Services Tax (GST) and a key figure behind recent Union Budgets,will move to the Planning Commission shortly,with a mandate to coordinate the GST-related matters with the state governments.

Sources say that revenue secretary PV Bhide had proposed a four-month extension of Modis term in his department,but finance ministry had finally taken a view that he should return to his parent cadre since his tenure with the Centre had come to an end.

However,considering the extensive work,Modi had done in formulating the GST design,the government has decided to make use of his skills and knowledge base within the Planning Commission. The GST task force headed by Modi has recommended a single,12% rate on all items (with a 7% share for the states),with minimal exemptions. He was also one of one of the chief architects of Direct Taxes Code.

Finance minister Pranab Mukherjee recently conceded the GST can be implemented only in the second half of the next fiscal. The empowered committee of state finance ministers,which is the primary channel of any GST interaction with states,has been critical of the task forces methodology and its suggestions. Modi will have to do a tightrope walk while interacting with states for designing the GST.