GST rate likely to be over 12%: FinMin

 

Press Trust of India / New Delhi March 4, 2010, 12:17 IST

The Finance Ministry today said that the proposed

Goods and Services Tax rate is likely to be higher

than 12 per cent, which was suggested by the task 

force set up by the 13 Finance Commission.



The Finance Commission (task force) had recommended
an overall GST rate of 12 per cent "but it is likely to be
higher than that", Revenue Secretary Sunil Mitra said at a CII seminar here.

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 five per cent GST
rate at the Central level and seven per cent at the state level.

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