ST hike needed to move towards GST - Revenue secretary
SPEAKING at the FICCI meeting, the Revenue Secretary said that the proposal of raising service tax to 14% from 12.36% in the Union Budget was a necessary measure in the eventual movement towards Goods and Services Tax (GST). States will get powers to tax services under the Goods and Services Tax, pushing up the rate, so the government has raised the rates, signalling transition towards a new regime.
Referring to the view that GST rate was a cause for concern, the Chief Economic Advisor, Mr. Subramanian said the GST rate should be internationally competitive and suggested the more the industry harps on this and sends out a clear message to that effect, the better it would be.