RBI SUGGESTS 2-TIER GST STRUCTURE

The Reserve Bank has suggested a two-tier structure for the Goods and Services Tax (GST) which is slated to come into effect from April 1, 2010."From the administrative angle, there are supports for a two-tier structure of GST involving central and state governments... use of both the Centre and state machineries in the implementation of GST would be ideal," the Reserve Bank of India (RBI) said in its annual report on state finances for 2007-08.Based on the success of VAT, the government has decided to introduce GST for all goods and services."Centralisation of sales taxation is not essential.... and central and state taxes can exist side by side," said the Reserve Bank of India – www.timesofIndia.com