Panel suggests items,services to be exempted from GST

The working group formed by the Empowered Committee of State Finance Ministers has suggested that 22 items including...

The working group formed by the Empowered Committee of State Finance Ministers has suggested that 22 items including paddy rice,wheat,atta,pulses,coarse grains,meat,fish,unprocessed vegetable/ fruits,salt,prasadam,bhog or mahabhogya by religious institutions,books and periodicals should be kept under the exempt list for the Goods and Services Tax (GST).

Further,services like those provided by the government and other statutory bodies as part of their sovereign functions,postal services,ambulance services provided by authorised persons for transport of sick persons,educational services by the Center,states or local bodies,healthcare provided by the Centre,states or local bodies,exemptions required under international agreements etc should be exempted from the new indirect tax,the working group has suggested.

However,the Empowered Committee of State Finance Ministers (ECSFM),though formed the working group months ago for discussing issues regarding the exempt list of commodities and services,has still not deliberated upon the report,which was submitted to them many months ago,even though the states have been demanding discussions on them.

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This is one among several other hurdles that is contributing hugely to derailing the scheduled implementation of the GST by April 1,2010.

These are the things which are delaying the entire process. The report,which has clearly laid down the list of exemptions,has not even been taken up in the meetings so far even though it was submitted long back. Now,we even have the Thirteenth Finance Commissions task force report which talks about a list of exemptions, official sources told The Indian Express.

Since the report submitted has not been discussed,there is no clarity within the empowered committee as to what all should be included in the exempt list and due to this the Centre is not able to proceed further,the sources added.

The working group was constituted in January this year to recommend on the rules and principles of taxing the transactions of services including inter-state services,the goods and services that should be kept in the exempted list,and finalisation of the model suggested for inter-state movement of goods including stock transfers.

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Regarding the services,the views of the working group seem to be in congruence with the report released by the Task Force on GST Thirteenth Finance Commission.