Centre agrees to delete DSA, 3 sub-committees set up

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Bhubaneswar: A day after resolving the contentious CST issue, state finance ministers on Tuesday formed three sub-committees to look into other matters like IT infrastructure for smooth roll-out of the Goods and Service Tax regime.
 
"The deadlock over GST issue is now over. It is historic as there was a general consensus for introduction of GST," Sushil Kumar Modi, the chairman of Empowered Committee of Finance Ministers, told reporters here.
 
Though there was broad consensus over many features of the GST Bill, the Empowered Committee decided to set up three sub-committees to resolve issues which could not be agreed upon by the finance ministers of different states, he said at the conclusion of the two-day meeting of state finance ministers.
 
While one sub-committee will deal with integrated GST (IGST), another sub-committee to address issues relating to revenue neutral rates (RNR) and Place of Supply Rules (PSR).
 
The second sub-committee will deliberate mostly on service tax rules, said Modi, who is also the Finance Minister of Bihar.
 
As state finance ministers sought complete withdrawal or reduction of Dual Control System to protect interest of small and medium traders, the Empowered Committee also decided to put the issue for verification of a sub-committee.
 
"The three sub-committees will give their reports within three months," Modi said adding the sub-committee on Dual Control will have to deliberate on the issues relating to exempted items and threshold for imposition of GST.
 
The Empowered Committee also resolved to suggest to the Finance Ministry to incorporate provision of allowing the states to opt out of the GST fold if they desired. "In the present GST Constitution Amendment Bill there is no such provision. We cannot force states to accept GST," Modi said.
 
Stating that there was a general consensus over the design and basic features of the GST, Modi said the states demanded the centre should not not hold rights to impose tax on declared goods like coal and LPG.
 
"The states want removal of this provision of declared goods from the Bill," he said.

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