The first Discussion paper on the proposed GST has been made official by the Finance Minister, Pranab Mukherjee at the meeting of the Empowered Committee of State Finance Ministers chaired by Asim Dasgupta (Finance Minister of West Bengal). A concurrent dual GST model will be adopted with the Centre levying the Central GST while the States would impose the State GST. An integrated GST would be levied on all inter-state transactions.

With respect to the States, a two-tier rate structure will be followed, one for necessities and the other for other goods in general. The specific rates have not yet been spelt out. Exports and processing units of SEZ would be zero-rated. Imports of goods and services will be taxed on the basis of the destination principle. Alcohol and petroleum products will be outside the purview of the GST (the erstwhile regime will be applicable to the respective goods).

Though the paper says that the IT infrastructure will be in place by mid-January 2010 there is uncertainty as to the exact time schedule for rolling out GST.