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“In
general in GST both should be taxed at the same rate.
Irrespective of what is being discussed, there should be
no different rate, that is not a very good idea,” Mr
Shome at a discussion organised by the Foundation for
Media Professionals.
However,
he said, in India due to various social reasons the GST
rates would have to be different. “Because of social
reasons we may have to do it that way,” Mr Shome, who is
at present the chief economist of the UK's tax department,
said.
In
fact, chief of states' panel on GST Mr Asim Dasgupta had
also said the rates for goods and services will be the
same though there will be two slabs for GST. The GST
regime is slated to come into effect from April 1, 2010.
The
proposed structure will subsume central levies such as
central excise, additional excise, additional duty of
Customs or countervailing duty, service tax and state
taxes levied on goods such as state value added tax.
The
GST will have two rates, one at the state level and the
other at the federal level with two slabs, as per the
agreed structure between the Centre and states. The Centre
has also asked states to look at bringing petroleum
products, including crude, hi gh-speed diesel and petrol,
within the ambit of the GST.
Currently,
these products are outside the VAT regime and state
governments levy sales tax which varies between 25 and 33
per cent from state to state.
Source
: Hindu Business Line - Chennai, India, dated
20/01/2009
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