India likely to miss 2016 GST deadline
- Jan 9, 2016 | Richard Asquith
Ongoing political differences means that India is almost certain to miss its target implementation of a Goods & Services Tax in 2016.
The opposition Congress Party is contending that compromises made by the ruling BJP government render the new tax too inefficient. In particular, there is still no agreement on the final, standard rate. It is speculated that the rate will be between 16% and 18%. The main sticking point is agreeing on a revenue raising neutral rate. This will be split between the Centre, the national government, and the local States.
The proposed GST regime would replace the existing VAT, CENVAT, Service Tax, Professional Tax and other consumption levies.