India Inc on Friday welcomed the report of the committee on the goods and services tax headed by Chief Economic Advisor Arvind Subramanian recommending a revenue neutral rate range of 17-18 percent for the proposed GST.
"FICCI welcomes the recommendations put forth by the GST panel today (Friday). The industry has been looking forward to this report and puts to rest the taxpayers' anxiety on the expected rates and many other issues relating to GST regime," A.Didar Singh, secretary general of the Federation of Indian Chambers of Commerce and Industry (FICCI) said in a statement here.
Noting GST is expected to add about 2 percent to the GDP, he said it will accrue long-term benefits not only to government, industry or traders but to the final consumers as well.
"I hope this recommendation would expedite the process of introduction of GST in India. The ruling and opposition parties can come to an agreement based on the recommendation. If the government finds the revenue collection down, GST council can revise the rate upwards any time," said Sachin Menon, partner and head, indirect tax at international accounting firm KPMG in India.
Commenting on the report, Saloni Roy, senior director, Deloitte India said: "The suggested standard rate of GST of around 17 to 18 percent appears to be a modest rate for manufacturers who currently suffer the levy of central excise duty at 12.5 percent as well as state levies which may be as high as 14.5 percent to 15 percent."
