For the first time, the Empowered Committee of State Finance Ministers has indicated that the Goods and Services Tax (GST) may be implemented by April 1, 2013. This indication comes after the Centre said it is willing to consider States' demand on the issue of compensation for reduction in Central Sales Tax.
After meeting the Finance Minister, Mr Pranab Mukherjee, Mr Sushil Kumar Modi, Chairman of the Empowered Committee, said: “He (the Finance Minister) is open to everything. He said the chapter on compensation is not closed and he has a very open mind regarding compensation. What we discussed today, I am confident that by April 2013, this GST can come.” Mr Modi, who is also Deputy Chief Minister of Bihar, said that a committee of senior officials of the Central and State Governments would together sort out the problem of compensation. In the first week of May, the Finance Minister will have meetings with State finance ministers.