By IANS,
New Delhi : Constitutional amendments will be introduced to facilitate the proposed goods and services tax (GST) in the current budget session of parliament, Finance Minister Pranab Mukherjee said Monday.
“As a step forward for rollout of GST, I propose to introduce the constitutional amendment bill in this session of parliament,” said Mukherjee while presenting union budget for 2011-12 in the Lok Sabha.
He said the federal government had made considerable progress in narrowing down the differences with states.
“The decision on GST has to be taken in consultation with the states with whom our dialogue has made considerable progress in the last four years. Areas of divergence have been narrowed,” he said.
The finance minister said the direct tax code will be effective from April 1, 2012. The Direct Tax Code Bill was introduced in parliament in August last year.
“Introduction of the direct tax code and the proposed GST will make a watershed. These reforms will result in moderation of rates, simplification of laws and better compliance,” he said.