Advocate Anandaday Misshra
It is being claimed by various sources that a report on GST Revenue Neutral Rate (RNR) can be finalised by this week. The committee constituted by Ministry of Finance (MOF) may report a RNR rate around 18 % .
It is pertinent to note that the said committee is being headed by Chief Economic Advisor (CEA) i.e Mr Arvind Subramanian.
The fate of GST rate shall be purely dependent on such declared RNR.
The following aspects shall be suggested by the committee:
1. Concessional & Lower GST Rates
Essential goods and services & precious metals may be included
2. Standard GST rates
Maximum products and services to fall under this rate.
3. Higher GST Rates
Cigarettes, luxury cars and beverages may attract higher GST rate.
The proposed 1% additional inter-state manufacturing tax may be also dropped from the GST kitty.
(Advocate Anand Mishra, AMLEGALS– The author is a leading indirect tax advocate handling cases in CESTAT & High Courts of India. He can be contacted on firstname.lastname@example.org and for more please refer www.amlegals.com)