“The wording (for tax rate under GST) has been worked out. States also unanimously opposed capping of tax rates in the constitution amendment bill, isolating the Congress which has insisted on this. A consensus over the revenue-neutral rate (RNR), or the tax rate at which there will be no revenue loss to the states under a GST regime, proved elusive. New Delhi: The goods and services tax (GST), whenever it comes into force, could end up being higher than 18%, with state governments rejecting the rate proposed by a panel led by chief economic adviser Arvind Subramanian. It was an absolute consensus among state finance ministers and has been conveyed to the Union finance minister.

Source: Mint July 26, 2016 19:58 UTC