P.M.’s Advisory Committee Wants One Rate Each for Goods, Services Under New GST

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Dec. 21 – The Indian Prime Minister’s Economic Advisory Committee favors a single tax rate each for goods and services or one common rate for both under the proposed goods and services tax (GST), according to the committee’s chairman.

“The Centre could follow the pattern in which there is only one rate for goods and one rate for services, or one rate which is common to both goods and services,” PMEAC chairman C Rangarajan said.

According The Times of India, the chairman believes that there is an advantage in having single uniform rate. When asked whether precious metals should have separate rate as suggested by the empowered committee of state finance ministers, Rangarajan said, “I think the advantage lies in having one single rate.”

A discussion paper floated by state finance ministers suggested two main rates for goods, besides a special rate for precious metals. However, for services the committee proposed just one rate. The committee also suggested that some goods be exempted from the proposed GST.