There is a 70% possibility of the indirect tax legislations being approved in Parliament to pave the way for implementation of the proposed goods and services tax (GST), finance minister P Chidambaram said.
“GST is possible, but it’s possible only if the central government and all the state governments, which are now ruled by eight-nine different political parties, work together,” Chidambaram said, while answering questions at the India summit of The Economist. He said he was able to build consensus on VAT when he was the finance minister and detailed efforts being made to roll out the country’s most ambitious tax reform.
“The most reluctant states then are today the strongest supporters of VAT. So VAT was done. I am trying to forge a similar consensus on GST…Now we reached a stage where the empowered council (of state finance ministers) has authorized us to draft a constitution amendment Bill, (and) a normal bill for introducing GST,” he said.