Wednesday, May 6, 2015

GST rate will be much more diluted than 27%: Jaitley

GST rate will be much more diluted than 27%: Jaitley

New Delhi: The GST rate will be “much more diluted” than the speculated 27 per cent and the final rate will be worked out by the GST Council, Finance Minister Arun Jaitley said today.


“I straightaway concede that 27 per cent would be very high…after this 27 per cent (Revenue Neutral Rate) was born, the states and the Centre have decided to keep alcohol out,” he said in a reply to GST Bill debate in the Lok Sabha.

“We have decided to keep petroleum out and every state finance minister is not interested in imposing higher taxes on its own people, and neither the central government. Therefore, this figure (RNR) is going to much more diluted compared to the figure (27 per cent) which has been mentioned,” he said.

Revenue Neutral Rate (RNR) is the rate at which there will be no revenue loss to the states after GST implementation.

“These are the figures which would be decided by GST Council,” he added.

The GST Council will have Jaitley as its Chairman and comprise two-third of members from states and one-third from the Centre.

GST is termed as the biggest indirect tax reform since 1947. A single rate GST will replace central excise, state VAT, entertainment tax, octroi, entry tax, luxury tax and purchase tax on goods and services to ensure seamless transfer of goods and services.

Allaying concerns raised by some of Lok Sabha members regarding the 27 per cent RNR speculation, Jaitley said “it is going to be too high and therefore the cost and prices itself will go up”.

He clarified to the House that the number was not given by the government or the GST Council but by a particular organisation in its own internal assessment.

“It got leaked out and somebody said it is 26.8. so that is how this figure of 27 per cent was born,” he said.

However, without hazarding a guess as to what the final GST rate would be, Jaitley said, the 13th Finance Commission had suggested 18 per cent as a possible figure.

PTI

0 comments:

Post a Comment

Now Trending

Holidays to be observed in Central Government Offices during the year 2020

Holidays to be observed in Central Government Offices during the year 2020 CENTRAL GOVERNMENT HOLIDAY LISTS 2020 F.No.12/1/20...

Disclaimer:

All efforts have been made to ensure accuracy of the content on this blog, the same should not be construed as a statement of law or used for any legal purposes. Our blog "Central Government Staff news" accepts no responsibility in relation to the accuracy, completeness, usefulness or otherwise, of the contents. Users are advised to verify/check any information with the relevant department(s) and/or other source(s), and to obtain any appropriate professional advice before acting on the information provided in the blog.

Links to other websites that have been included on this blog are provided for public convenience only.

The blog "Central Government Staff news" is not responsible for the contents or reliability of linked websites and does not necessarily endorse the view expressed within them. We cannot guarantee the availability of such linked pages at all times.

Any suggestions write to us
centralgovernmentnews@gmail.com