Reports of Goods and Services Tax (GST), the revenue neutral rate being suggested by the panel could be in the range of 20-24% and the panel was originally supposed to give its report around September. Earlier there were delays because wide-ranging inputs and suggestions were required.
The panel will present suggestions for what is known as a revenue-neutral rate (RNR), as agreeable to all stakeholders as possible. The report would involve studying different proposals and taking into account expected levels of growth of the economy, different levels of compliance, and broadening of the tax base under a GST.
This could be around 20-24%, much lower than the RNR of almost 27% suggested by a sub-panel of the Empowered Committee of State Finance Ministers on the GST. A final decision will be taken by the GST Council.
Earlier this year that a 27% rate was too high, while his state counterparts say anything less than 25% would lead to loss of revenue for them.
