Taking into account the recommendations of the Joint Working Group consisting of Principal Secretaries/ Secretaries(Finance/Taxation) and Commissioner of Trade Taxes of all States/UTs, the views expressed by the Government of India and the States in several meetings of the Empowered Committee held during 2009 and also discussions held with the Hon’ble Union Finance Minister, the First Discussion Paper on Goods and Services Tax in India and Frequently Asked questions and Answers were released by the Empowered Committee of State Finance Ministers in the presence of Hon’ble Union Finance Minister on 10th November, 2009, inviting interaction with the representatives of industry, trade, agriculture and common people.

Immediately after the release of First Discussion Paper on GST, discussions were held with the Members of the Consultative Committee attached to the Empowered Committee, which has the representations from the Trade Bodies and Chambers of Commerce and Industry. The Chairman, Empowered Committee also had a detailed discussion with the Confederation of All India Traders (CAIT) in November, 2009.

The Discussion Paper is divided into four parts. Since GST would be further improvement over the VAT, part 1 begins with a brief reference to the process of introduction of VAT at the Centre and the States and also indicates the precise points where there is a need for further improvement. This part also shows how the GST can bring about this improvement. With this as the background for justification of GST, part 2 then describes the process of preparation for GST. Thereafter, part 3 presents in detail the comprehensive structure of the GST model. For illustrating this GST model further, there is in the end an Annexure on Frequently Asked Questions and Answers. Complete PDF is available here.