India Goods and Services Tax (GST) rate to be between 16-20%
- 27 June 2011 | Richard Asquith
The Indian Central Board of Excise and Customs (CBEC) has indicated that the proposed Goods and Services Tax (GST) is likely to have a rate of between 16% and 20%. This would replace the existing Indian VAT, Service Tax, CENVAT and other taxes.
TARGET TO INTRODUCE GST WITHIN THE NEXT FINANCIAL YEAR
The implementation date has been previously postponed due to disagreements in its structure between the Centre and some states. Until recently, the target date to introduce GST was 1st April 2012, however the Centre has announced that as it is an indirect tax implementation does not have to be at the start of a financial year.
DISPUTE SETTLEMENT AUTHORITY TO BE SET UP
To ensure that the implementation of GST goes ahead, a Dispute Settlement Authority will be established to resolve issues between the Centre and individual states. A group has also been set up to develop and implement software ready for the new tax. This software is currently being tested in 11 states.