NEW DELHI – Finance Minister Arun Jaitley today held a meeting with Revenue Secretary Rajiv Takru and other senior finance ministry officials regarding the contentious Goods and Services Tax.
The finance minister discussed the contentious issues, including compensation, blocking the rollout of the GST, a ministry official said.
The Direct Taxes Code Bill, which is to replace the Income Tax Act, 1961, and the Wealth Tax Act, 1957, was introduced in the Lok Sabha in August 2010 by then Finance Minister Pranab Mukherjee.
In the revised draft of the bill released on Apr 1, the income tax department, among other things, proposed a tax slab of 35% for individuals and Hindu Undivided Family having total annual income of more than 100 mln rupees.
The introduction of the GST–to replace existing state and federal taxes such as excise duty, service tax, and value-added tax–has been pending due to opposition from states which fear revenue losses due to its implementation.
The issues regarding inclusion of petrol and alcohol under the GST were also discussed in the meeting, the official said.
The finance minister asked the revenue secretary to arrange a meeting of the empowered committee of state finance ministers next month, the official said.