Single GST rates at central and state levels proposed; implementation deferred for preparedness and consensus reasons.
The task force recommends single rates at the Central and State levels under the proposed GST, subsuming central excise, service tax, state VAT, cesses, surcharges and local taxes into a two-tier GST. Citing lack of preparedness and absence of intergovernmental consensus, the task force advises postponing the planned implementation by six months to allow resolution of outstanding design and administrative issues.

Dual GST model establishes concurrent CGST/SGST with input tax credit and IGST for inter state supplies.
GST is a value addition tax permitting continuous input tax credit from producer/service provider to retailer so the final consumer bears only the last stage tax. The architecture is a dual GST-CGST and SGST-levied concurrently on the same transaction value, with credits generally usable only within each component. Inter State supplies use an IGST model levied by the Centre to preserve cross State input tax credits and avoid tax blockage. Specific Central and State levies are proposed for subsumption, certain items remain outside GST, and constitutional amendment is required for implementation.

Dual GST framework: separate central and state components with IGST for inter state supplies to preserve input tax credits.
The Paper proposes a dual GST with separate Central and State components, distinct ITC pools, and uniform core features; an IGST levied by the Centre on inter State supplies to preserve uninterrupted ITC and avoid cash blockage; subsumption of specified Central and State indirect levies while excluding certain items (notably alcoholic beverages and specified petroleum products); a two rate plus special and exempted item structure with zero rating of exports; uniform thresholds and a composition scheme for small taxpayers; and necessary constitutional amendments, central and State legislation, IT infrastructure and a time bound compensation mechanism for States during transition.

Goods and Services Tax design promotes destination-based unified taxation with seamless input credit and harmonised state-centre procedures.
The speech sets out the proposed architecture for a national Goods and Services Tax, diagnosing the current fragmented indirect tax regime and specifying design conditions: aligned exemption lists, moderate combined Central and State rates, uniform State treatment, destination-based taxation, a seamless input credit chain across intra- and inter-state supplies, similar tax treatment for goods and services, export neutrality, and simplified harmonised procedures, together with administrative reforms including enhanced taxpayer services and a robust IT infrastructure to support compliance and data exchange.

GST reform as a policy instrument to boost economic growth and competitiveness, advocated in a national policy speech.
Implementation of the Goods and Services Tax (GST) as a policy instrument to promote accelerated economic growth and competitiveness is presented in a policy speech by Dr. Vijay Kelkar, framing GST as a significant tax reform agenda and directing readers to the full text for detailed rationale and implementation considerations.

Goods and Services Tax draft to set legislation, rules and procedures, with stakeholder consultation before implementation.
The empowered group will finalise and publish a draft paper on the Goods and Services Tax within a month to enable implementation of the tax regime; the draft, prepared by a joint working group of Finance Ministry and state revenue officials, will address legislation, rules and procedures and will be followed by stakeholder consultations.

Dual GST framework proposed to subsume multiple central and state taxes, establishing shared IT infrastructure for inter state tax data.
A nationwide dual GST is proposed to subsume CST and other Central and State taxes with a Centre-State model respecting fiscal federalism; concurrently, the Centre and States jointly fund the Tax Information Exchange System (TINXSYS) and support State VAT computerisation, including a Mission Mode Project to finance Commercial Taxes Department computerisation.

Compensation for States to support a harmonised GST implementation to preserve revenues and enable uniform national tax procedures.
The speech urges a harmonised, dual GST subsuming major Central and State indirect taxes with minimal rates and limited exemptions, coupled with uniform procedures for levy, assessment, collection and dispute resolution to create a national common market. It stresses robust IT-based inter state verification and coordinated information sharing to prevent arbitrage, pragmatic reform of checkposts, and careful treatment of thresholds and composition regimes for small enterprises. The Finance Commission indicates willingness to consider a compensation mechanism for States to support implementation of a harmonised, "flawless" GST.