CBEC Sees GST Rates at 16-20%: Report.

The Central Board of Excise and Customs (CBEC) has reportedly announced that tax rates under the proposed Goods and Services Tax (GST) regime in India are likely to be between 16% and 20%.

“World-over, GST rates are typically between 16% and 20%. In India it is likely to be the same,” CBEC Chairman, Sumit Majumdar, was quoted as saying by the reporters. He added that although tax rates under the proposed GST would come down, tax collection would go up due to increased optimism.

A Constitutional Amendment Bill on GST was introduced in the Lok Sabha in the Budget Session. The GST would subsume indirect taxes such as excise duty and service tax at the central level and VAT on the states front, besides local levies.

The implementation of GST has been stuck for years due to differences between the Centre and some states. A dispute settlement authority would be setup to resolve the feud. Also, a taskforce has been formed to frame the GST legislation.

Source : indiainfoline.com