FM has restated governments’ priority to implement GST and DTC by FY12, the most important reform in taxation policy. DTC Code is proposed to be effective from April 1, 2012 to allow taxpayers, practitioners and administrators to fully understand the legislation and adjust to the revised procedures. Unlike DTC, decisions on the GST have to be taken in concert with the States. As a step towards the roll-out of GST, FM proposed to introduce the Constitution Amendment Bill in this session of Parliament. Establishment of a strong IT infrastructure is essential to rollout GST successfully. On the direct tax front, reduction in surcharge on Corporate tax from 7.5% to 5% and an increase in tax limits on personal income tax from Rs. 1.6 lakh to Rs. 1.8 lakh is in line with principals of draft DTC.