The government is looking to implement the GST from April 2016
The Centre and the states are working on a new revenue neutral rate (RNR) for the Goods and Services Tax (GST) which is currently pegged at 27 per cent.
New Delhi: The Centre and the states are working on a new revenue neutral rate (RNR) for the Goods and Services Tax (GST) which is currently pegged at 27 per cent. The government is looking to implement the GST from April 2016. The RNR will make sure that there is no revenue loss to the states after GST implementation.
Revenue secretary Shaktikanta Das said that once the RNR is recalculated, then, what will be the GST rate will be decided by the GST council under the Constitutional Amendment. He said that recalculation is necessary as, at present, it does not take into account the taxation of petroleum products and the one per cent additional tax, which states can levy as part of the GST Bill.
“The earlier RNR has to be changed because there have been many changes thereafter relating to GST... On petroleum, VAT and excise will continue for some time. Additional one per cent tax on inter-state supply of goods is also a new concept. The old number does not hold good anymore,” Mr Das said.
A sub-committee on GST had in November 2014 suggested that the RNR of GST be pegged at 27 per cent. It had suggested that states GST be at 13.91 per cent and Central at 12.77 per cent. “After it is recalculated, the Council will take a decision,” he said. The finance minister Arun Jaitley had last week said that the implementation of GST would increase GDP by one to two per cent.
( Source : dc correspondent )
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