Panel to Soon Submit Report on GST Rates: Subramanian

The Committee set up by the government to recommend revenue neutral rate (RNR) for the GST will submit its report in the next 4-6 weeks

NEW DELHI: The Committee set up by the government to recommend revenue neutral rate (RNR) for the GST will submit its report in the next 4-6 weeks, said Chief Economic Advisor Arvind Subramanian, who is also heading the panel.

"We are going to do our best to implement Goods and Services Tax (GST). We will have report (to recommend possible RNR rate under GST) ready in 4-6 weeks. The government is going to do its best to stick to the deadline," Subramanian said at an event here.

"India is seeing good institutional reforms like GST, which is likely to be implemented on April 1, 2016," he added.

Last month, the government had formed a committee under the Finance Ministry's Chief Economic Advisor to recommend possible tax rates under GST that would be consistent with the present level of revenue collection of the Centre and states.

While making recommendations, the committee was asked to take into account expected levels of growth of economy, different levels of compliance and broadening of tax base under Goods and Services Tax (GST).

A Rajya Sabha Select Committee today adopted a report endorsing majority provisions of the GST Bill after the Centre agreed to compensate states for revenue loss for 5 years even as Congress filed a dissent note.

The GST Bill has been passed by the Lok Sabha and was referred to the Select Committee by Rajya Sabha, where the ruling NDA government does not enjoy majority, for scrutiny.

Talking about DBT scheme, Subramanian further said that government proposes to roll out direct benefit transfer (DBT) scheme for food and kerosene.

"There is a lots of talk going on to roll out DBT scheme for food and kerosene. The government is committed to extend DBT benefit to other commodities also," he said. Subramanian expressed his desire to help states in preparing their economic survey, adding," having Chief Economic Advisor (CEA) and Niti Aayog in every state would be a good idea."

He stressed need of having more talent in Public Sector Undertakings (PSUs). Subramanian said India's growth in FY16 will be better than FY15. The CEA, however, expressed concerns over India deteriorating export outcome. "Deteriorating export outcome a worry, we see global environment as a big constraint for India's export growth," he said.

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