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The finance ministry has set up a committee, to be headed by Chief Economic Advisor Arvind Subramanian, which has been tasked with recommending possible tax rates under the proposed Goods and Service Tax that would be consistent with the present level of revenue collections of Centre and states. "While making recommendations, this committee would take into account expected levels of growth of economy, different levels of compliance and broadening of tax base under GST," the ministry stated in a press release on Wednesday.
"The committee would also analyse the sector-wise and state-wise impact of GST on the economy. The committee is expected to give its report within two months," the release said. It did not give details on the composition or additional terms of reference of the committee. A sub-committee on GST had proposed a 'revenue-neutral rate' (RNR) of 27 per cent under GST. However, the proposal did not find unanimous support in the empowered committee of state finance ministers, and has been sent to National Institute of Public finance and Policy for further review.
Additionally, a steering committee has also been formed under the co-chairmanship of additional secretary, revenue department, and member secretary of the empowered committee to look at the information technology preparedness of the revenue department, Central Board of Excise &Customs, and tax authorities.
This committee will also monitor the "finalisation of reports of all the sub-committees constituted on different aspects relating to the mechanics of GST and drafting of Central GST, Integrated GST and State GST laws/rules," the statement said.
Finance Minister Arun Jaitley, and other central and state officials have maintained that the rollout target for GST of April 1, 2016 will be met.
