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India Goods and Services Tax (GST) rate to be between 16-20%

  • VAT
  • 28 June 2011 | Richard Asquith

India Goods and Services Tax (GST) rate to be between 16-20%

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.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.