“In
Goods and Services Tax (GST), the tax is levied on
all economic transactions, irrespective of the fact
whether the transaction relates to goods or
services. The model for GST and the rate depends
upon a number of factors and will be decided jointly
by the Centre and the states”, said a finance
ministry spokesperson.
The
clarification is in response to media reports on
Finance Minister P Chidambaram’s post-Budget
meeting with representatives of Indian industry
earlier this week where he had hinted that the GST
rate would be lower than 16 per cent.
GST
is scheduled to be implemented from April 1, 2010.
There will be one or more central and state GST
rates for all goods and services.
