GST - RNR Not to Exceed 20% - CBEC Member
CBEC Member VS Krishnan told a CII Global Tax Summit yesterday that t he Empowered Committee is working with think tank NIPFP on the Revenue Neutral Rate, based on a fresh set of data. He assured the industry that the rate should not exceed 20%. He is also reported to have said:
Drafting of the GST law has already been done and it would be given to the Empowered Committee for their inputs. Thereafter, it would be put in the public domain for comments. In addition, the draft Place of Supply rules will also be made public for comments.
A lot of ground work needs to be done on GST by Industry Associations. Industry needs to identify challenges in the transitional provisions to the new GST legislation as well as suggest solutions to the problems.
We need to create a state level GST secretariat in which senior officials from centre and state should come together for interactions in institutionalised arrangements. A lot of hand holding is required for the successful implementation of GST.
There is undue revenue pessimism about GST. But on the contrary, revenue is expected to boom under GST.
On the issue of delay in refund of service tax, Mr Krishnan mentioned that this is being looked into and CBEC will come out with the developments very shortly.
Going by indications, we are going to export all the Central Excise confusion and litigation into the GST.