Proposed GST rates suggest limited impact on most sectors – Feedback

Multiple GST tax slabs are “perhaps necessary” in India given the wide disparity in consumption levels and they are likely to have limited impact on most sectors.

A large number of tax slabs agreed upon by the GST Council may however dilute some of the benefits of the GST system, but preliminary understanding of the proposed tax rates suggests broadly neutral impact for sectors, said the report by Kotak Institutional Equities. “The structure aims to minimise the impact on CPI inflation and revenues of governments as the proposed GST rates are similar to current ‘overall’ rates for most goods,” the report said, adding that “hence, we see limited impact on overall government revenues”. The GST Council yesterday agreed on a 4-tier GST tax structure of 5, 12, 18 and 28 per cent, with lower rates for essential items and the highest for luxury and de-merits goods that would also attract an additional cess.

http://economictimes.indiatimes.com/news/economy/policy/proposed-gst-rates-suggest-limited-impact-on-most-sectors-report/articleshow/55244407.cms

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