ADB to give technical help to boost revenue from GST

Multilateral funding agency Asian Development Bank has decided to provide technical assistance to India to boost revenues through the proposed Goods and Services Tax.

The technical assistance would strengthen measures to improve GST collections, especially at the state-level, said ADB spokesman.

GST, which would harmonise excise duties, Value Added Tax and service tax, is slated to be introduced from April 1, 2010.

The technical assistance would develop and standardise best practices in systems and procedures in the areas of tax filing, tax assessment and tax auditing, reported the media.

This would increase the efficiency of tax collectors and tax assessors, and ultimately lead to higher revenue collections, freeing up resources for implementation of public policies.

A working group, comprising members of official VAT panel and union finance ministry officials, has suggested a dual model for GST.

This means that there would be different sets of rates for excise duty and service tax at the Central and state levels.

Official VAT panel has accepted this recommendation, which would now go to the Finance Ministry for approval. However, the working group is yet to decide on the rates for GST.

Source : Economic Times - Gurgaon, Haryana, India, dated 22/01/2008