The Prime Minister's Economic Advisory Committee (PMEAC)
has favoured a single slab each for goods and services
or one common rate for both under the proposed goods and
services tax (GST), unlike the proposal mooted by the
states.
"The Centre could follow the pattern in which
there is only one rate for goods and one rate for
services, or one rate which is common to both goods and
services," PMEAC chairman C Rangarajan said. He added
that there is an advantage in having single uniform
rate. When asked whether precious metals should have
separate slab as suggested by the empowered committee of
state finance ministers, Rangarajan said, "I think the
advantage lies in having one single rate."
A discussion paper floated by the empowered committee
suggested two main rates for goods, besides a special
rate for precious metals. However, for services the
committee proposed just one rate. It also suggested that
some goods be exempted from the proposed GST.
Last week, chairman of empowered committee of state
finance ministers Asim Dasgupta had said GST would have
four slabs. Among the GST tax slabs, it would be zero
for exempted items, one standard rate for majority of
goods and services and another having a moderate rate,
he said.
The committee expected the Centre will follow same
structure for GST as mooted by it. However, a task force
set up by the 13th Finance Commission has suggested a
single GST for the Centre and the states, though rates
proposed are different.
