<P> Sharma asserts that "political compulsions have led the government to propose an imperfect model of VAT", as it' goes against the basic premise of VAT', as it lacks both the removal of distortions in movement of goods across states and the uniformity in the tax structure . Chanchal Kumar Sharma (2005: 929) states, "Local or state level taxes like octroi, entry tax, lease tax, workers contract tax, entertainment tax and luxury tax are not integrated into the new regime, which goes against the basic premise of VAT, which is to have uniformity in the tax structure . The fact that no tax credit will be allowed for inter-state trade seriously undermines the basic benefit of enforcing a VAT system, namely the removal of the distortions in movement of goods across the states ." </P> <P> The Government of Gujarat had pass the "Gujarat Value Added Tax Act, 2003" (Act) in 2003 and specified that the date of implementation (appointed date) of the same would be notified later . Accordingly, the Government of Gujarat has vied notification no . GHN--14 / VAT - 2006 / S. 1. (3) (1) - TH dated 29 March 2006 notified that the appointed date for implementation of VAT regulations in the State of Gujarat shall be effected from 1 April 2006 . </P> <P> However "The Central Sales Tax Act, 1956" (Central Act) which levies sales tax on inter-state sales is still effective and all inter state sale and purchase transactions effected after 1 April 2006 in the State of Gujarat shall continue to be subject to levy central sales tax as applicable earlier . </P> <P> In Gujarat, "DVAT" Act 2003, will merge three existing state taxes: Gujarat Sales Tax Act, 1956 Bombay Sales of Motor Spirit Taxation Act, 1958 Gujarat Purchase Tax on Sugarcane Act, 1989 </P>

When did gst came into effect in india