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2010] GST - THE SCENARIO IN SOME OTHER COUNTRIES 121<br />
arise in GST regime is whether such works contracts be treated as goods<br />
or services or as a special class of goods or services arrangements for the<br />
purpose of levy of GST as these comprise of both the elements of goods<br />
and services. The practice followed in other countries can be studied to<br />
find solution for such a problem.<br />
Due to the dual structure of the GST, the assessees will be required to<br />
maintain separate accounts for Central GST and State GST. This could be<br />
cumbersome for the taxpayers.<br />
The EG’s report leaves many issues unresolved. For example, there is no<br />
mention/clarity in the report in regard to :—<br />
� What constitutional amendments would be needed to usher in dual<br />
regime of GST.<br />
� What would be the rate of tax for the CGST and SGST and for<br />
services.<br />
� The Taskforce of the Finance Commission has suggested 5 per cent<br />
and 7 per cent rates for the Centre and State. Media reports show that<br />
these could be 14 per cent and 16 per cent, respectively. Obviously,<br />
such rates would be too high.<br />
� The EG has yet to take a decision whether purchase tax levied by<br />
some States would be subsumed in SGST.<br />
� Decision have to be taken concerning administrative set <strong>up</strong> and<br />
assessment procedures for two categories of taxes.<br />
� Work for CGST and SGST integrated GST model has yet to start.<br />
Considering the fact that many issues concerning GST are yet to be<br />
resolved, the proposed date for its commencement i.e., April 1, 2010 seems<br />
to be impossible. There should be no hurry to implement this tax without<br />
full preparations. Hence, the Government should fix April 1, 2011 as the<br />
date for introducing the GST regime in the country and start working from<br />
now to achieve this target. There seems to be no need for a hurried<br />
approach.<br />
9-GST<br />
GOODS & SERVICES TAX CASES ❑ JANUARY 20 - FEBRUARY 4, 2010 ◆ 31