GST Law Will Soon be in Public Domain - RNR Rate under GST to be Less than 20%
While speaking at an interactive session on Enhancing Competitiveness of Indian Business on Tuesday (September 29), organized by Confederation of Indian Industry (CII), in Mumbai, Central Board of Excise and Customs (CBEC) Member V S Krishnan provided insight on what’s happening on GST.
“The remarkable part of the GST journey is the impressive convergence between states on a host of issues. I would suggest industry to look at critical exemptions and IT platform readiness rather than stressing too much on date of GST implementation as this can hamper preparedness,” he said.
“Goods and Service Tax (GST) once implemented will boost GDP growth by 1-2 per cent. It will have a major impact on reducing logistics cost which is around 14-15 per cent in India compared with the world average of 7 per cent,” a CII press release quoted him as saying.
He further added “The GST law is in place and on approval would be made available in public domain, and the new institutions with dedicated GST secretariats at State and Centre will be required post the implementation of GST for ensuring ease of doing business.”
Krishnan, according to the release, said the standing committee of the Rajya Sabha has taken the line that the GST rate should not be more than 20 per cent and more clarity will be given soon.
GST is expected to bring in substantial reduction in non-compliance in the trading sector, potentially bringing trading and manufacturing at par and increasing competitiveness.
The Constitution Amendment Bill for rollout of GST has been passed in the Lok Sabha, but is yet to be approved by the Rajya Sabha where the ruling BJP does not enjoy majority of its own.