CHENNAI: M. Govinda Rao, Member of the Economic Advisory Committee to the Prime Minister, has underlined the need for obtaining the opinions of stakeholders as the nation is poised to switch over to the Goods and Services Tax regime by 2010.
Participating in a conference on “GST for accelerated economic growth and competitiveness,” organised here by the Madras Chamber of Commerce and Industry and the Assocham, he said a centralised GST model was not feasible, while a dual model could be considered for the medium term.
K. Vaitheeswaran, advocate and tax consultant, said: “The present anomalies in Value Added Tax (VAT) have to be eradicated, and there must be a seamless credit system under VAT and service tax. This will facilitate the adoption of a uniform GST in the entire country.”
He recommended that the adjudicating and collecting authorities should not be clubbed in the GST regime.
Rajeev Ranjan, Commercial Taxes Secretary, who returned to the city on Wednesday after attending the meeting of the Empowered Committee of State Finance Ministers in Chandigarh, said there was a consensus among the members to follow a dual model on the GST, which he said would replace the unfair cascading double taxation system.
R. Sekar, Commissioner of Customs, said the need of the hour was to sensitise people to the GST. The GST, he felt, would have a major impact on the Centre-State relations.