After successful implementation of VAT in the country, the Government of India and the states felt that further reforms are required in Central and State taxes and, therefore, matter regarding introduction of GST in the country was discussed by the Hon’ble Union Finance Minister P.Chidambaram with empowered committee and accordingly in his budget speech 2007-08, announcement to this effect was made by him, in which he said ” I wish to record my deep appreciation of the spirit of cooperative federalism displayed by State Governments and especially their Finance Ministers. at my request, the Empowered committee of State Finance Ministers has agreed to work with the central government to prepare a roadmap for introducing a national level Goods and Service Tax (GST) with effect from April 1, 2010“.