The Chief Economic Advisor Arvind Subramanian led panel submitted its report on Possible Tax rates under Goods and Services Tax (GST) to the Finance Minister Arun Jaitley.
The commission recommended standard rate for Goods and Services Tax at 17-18%, the rate at which most products would likely be taxed. The Committee has suggested doing away with a proposal to levy a 1% inter state tax on transfer of goods.
The committee excluded real estate, electricity or alcohol and petroleum products while calculating tax rates but has suggested bringing them under the ambit of GST soon.
Highlights of Recommendations:
• It recommended a range of 12-40% for various products & services.
• Revenue Neutral Rate proposed at 15-15.5 prcent (Union and states combined).
• Include petroleum or alcohol in Goods Services Tax regime.
• Impact on inflation expected to be minimal.
The committee, however, did not favour putting the Goods Services Tax rate in Constitution Amendment Bill 2015.
If implemented, the Goods Servies Tax will help in cleaning up the tax system in India making it best in the emerging market economies and high income countries.
Arvind Subramanian led panel recommended standard rate for Goods Services Tax at 17-18 %
No comments:
Post a Comment