In Run-Up to GST, Finance Ministry Rechristens Service Tax Directorate

Even as the Modi government is yet to cross the Parliamentary hurdle before it can roll out a uniform tax regime, it has rechristened Mumbai-based Directorate General of Service Tax as Directorate General of Goods and Service Tax (DGGST), and shifted it to Delhi.

The move follows a decision by Central Board of Excise and Customs (CBEC), the apex policy making body for indirect taxes.

"It has been decided that DGST will henceforth be renamed as DGGST with effect from August 1, 2015," an order issued by the Finance Ministry said.

It has also been decided that the headquarter of DGGST will be shifted to Delhi from Mumbai along with the post of Principal Director General, it said.

"All records of DGST, Mumbai, will continue to be maintained in the existing office till instructions regarding their transfer are issued," the order said.

The order said, "It is further decided that the staff posted in the DGST, since their services are being placed on loan basis to other formations, will continue to draw their salaries from DGST."

The services of the employees posted in DGST, Mumbai, Kolkata and Chennai are to be placed at the disposal of respective Chief Commissioners for a period of one year.

"The officers posted at DGST, New Delhi will be treated as the officers posted to DGGST, New Delhi with effect from August 1, 2015," the Finance Ministry said.

Goods and Services Tax (GST), billed as the biggest tax reform post-Independence, proposes to create a uniform tax rate across the country by subsuming excise, service tax and other local levies. The Constitutional Amendment Bill on GST is still awaiting the nod of Rajya Sabha.

GST is estimated to boost India's GDP by 1-2 per cent. The government has proposed to introduce it from April next year. (NDTV)