GST may have multiple rates initially, no RNR too: Adhia

Ahmedabad, Sep 17 (PTI) The goods and services tax (GST)may have multiple rates on the lines of some Europeancountries and a revenue neutral rate will not be possibleinitially, Revenue Secretary Hasmukh Adhia said here today. The uniform indirect tax is expected to be rolled out fromApril next year. Adhia, however, said the final decision on this will betaken by the just-constituted GST Council comprising the Unionfinance minister and state finance ministers. "Instead of a single GST rate, there are multiple GSTrates in some European countries. We too may have to beginwith multiple rates and this is required to protect the poorand the middle class," Adhia reasoned, adding that a revenueneutral rate (RNR) will not be possible initially. Addressing the Gujarat Chamber of Commerce and Industryhere, he further said the rate structure will be such that"the overall burden of tax will come down in most commodities.But a final decision on this will be taken by the GSTCouncil". He expressed optimism that the proposed tax regime will beeffective next fiscal year and the GST software will be readyfor testing by January 1. "The IT network being created for the Centre and thestates is being monitored, and by January 1, the GST softwarewill be ready for testing wherein we will do live testing ofreturn filings, and by April 1, we will complete the entireprocess of rolling out GST," Adhia asserted. He said the state finance ministers will meet on September22 and 23 in New Delhi to discuss the pending issues on GSTsuch as tax structure, exemption limits and the like. Adhia also said the exemption limit for GST is beingraised to Rs 25 lakh, from Rs 10 lakh as proposed earlier, andmost states are on board. PTI KA PD BEN NRBARD