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GST Update: One Rate For One Product Type Likely
GST (NOAH SEELAM/AFP/Getty Images)
India may keep varied rates on the same type of products at a minimum, instead of applying the multiple rates structure under the upcoming goods and services tax (GST) regime. This is to ensure that the tax structure does not get any more complicated. All types of mobile phones or footwear, for example, could attract the same rate.
As per a report in the Economic Times, “Single rate for one product group will bring simplicity in the structure and make implementation easier,” said a government official, adding that differing rate structures within one segment could lead to unnecessary disputes and litigation.
The GST is expected to be rolled out on July 1.
India has adopted a four-tier tax structure of 5 per cent, 12 per cent, 18 per cent and 28 per cent. The rate applicable on most products has been predicted at 18 per cent. The highest rate has been pegged in the GST law at 40 per cent.
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