Orissa State Wants GST Deferred to 2011

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Jan. 7 – The east coast state of Orissa has requested that the Goods and Services Tax (GST) set to be implemented in April 1 be deferred to April 1,2011 and its Purchase Tax on foodgrain continued instead.

Local officials say the state is not ready to adopt the new GST. “We are not at all ready to go for GST system now. We have to make certain preparation before implementing it,” finance minister P. C. Ghadai told The Press Trust of India. He said that although Orissa along with other states have agreed to go for GST system, it would like the deadline to be extended.

He added: “We will also make a presentation on the Revenue Neutral Rate for the state under GST.” The new GST will streamline taxes and replace excise duty, service tax and value-added tax.

“Since Punjab and Haryana have been allowed to continue with Purchase Tax on foodgrain, Orissa will demand in the same manner,” he said.