New Delhi: Union revenue secretary Hasmukh Adhia has said that some overhaul of the Goods and Services Tax (GST) rates is needed to reduce the burden on small and medium businesses and the common man.
The revenue secretary said the overhaul would require some calculations by the fitment committee, that will decide which items need a rate rationalisation under the GST regime, which kicked in from July 1.
The GST Council has already cleared an approach paper for items to be considered for rationalisation, but it is not binding and the council can always deviate from the approach paper.
Mr Adhia said the committee will bring its suggestions to the GST Council as soon as possible. “We are very keen to do it as early as possible, it depends on how much time the fitment committee takes to work on it. They need data, need to calculate the revenue loss. They need various comparisons. But harmonisation has to be done,” he said.
The revenue secretary pointed out that there had also been opposition to VAT when it was first introduced in India in 2005. “People were on the streets because nobody knew what VAT is, the last fellow was only paying sales tax. It was more opposition that time than this,” he added....