GST rate likely to be over 12%, says finance ministry

The finance ministry on Thursday said that the proposed Goods and Services Tax (GST) rate is likely to be higher than 12%, which was suggested by the task force set up by the 13th Finance Commission, reports PTI.

The Finance Commission (task force) had recommended an overall GST rate of 12% "but it is likely to be higher than that", revenue secretary Sunil Mitra said at a CII seminar in New Delhi.
However, he clarified that he was not talking about the Central GST but the combined tax at the Union and state governments' level.

The task force had recommended 5% GST rate at the Central level and 7% at the state level.

GST was earlier scheduled to be implemented from 1 April 2010, but now the Central GST will replace most of the indirect taxes at Central and state levels like service tax, excise duty, value added tax (VAT), and local levies.

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