The proposed unified goods & service tax (GST) regime could spell an end to various kinds of exemptions enjoyed by the corporate sector. These include area-based exemptions and sectoral tax breaks.
Finance minister P Chidambaram had proposed the introduction of GST from April 1, 2010 in the last Budget. He had asked the empowered committee of state finance ministers to prepare a road map. The empowered committee is now giving final touches to its recommendations on the modalities of GST, which looks all set to be announced in Budget 2008-09. The Planning Commission has already endorsed the finance ministry’s view on launching GST from 2010 in the approach paper to the 11th Plan.