New Delhi [India], Dec 8 : Ruling out a single rate for the Goods and Services Tax (GST), Chairman of the Central Board of Excise and Customs Najeeb Shah said today at an ASSOCHAM event that the GST rate structure may be reviewed in wake of demonetisation even as he asserted that the Centre would not like the "dual" structure into a "duel".
"The Goods Service Tax (GST) rate structure may be reviewed in wake of demonetisation; whether rate change possible shall be known with time," said Najeeb Shah, chairman, Central Board of Excise and Customs (CBEC) while inaugurating a National conference on GST organized by ASSOCHAM.
He said the CBEC would also look into anti-profiteering mechanism while the GST structure may undergo change in the wake of the demonetisation of high value currency notes.
Shah said there will be GST readiness on part of the government and urged the industry to be ready. On the issue of dual control among the states and the Centre, he said "we don't want to reduce 'dual' (GST structure) into duel.
The administration of state or centre will be dealing with one assesses only. So, the entire cross empowerment went was to ensure the suitability empower with each other. The both the administration centre and the state are committed too. I'm sure that an issue will be resolved, added Shah. Chairman CBEC also said that the multiplicity of GST rates is the necessity due to the economic and political compulsion.
The Government unsure about exact compensation figures for states, may vary between Rs. 10,000 to 20,000 crore, said Shah. The central government and state governments have to collect Rs. eight lakh plus crore of revenue which they are currently getting from indirect taxes other than customs.
In the course of the GST council deliberations, growth rate of 14 percent for five years for each one of the states has been assumed.
It's a huge assumption and the burden which central government has cast upon itself. "I'm sick and tired of hearing from wise people that we should have one rate of GST," said Chairman of CBEC.
We have a wide range of commodities which is not taxed by the state administration, taxed by central excise and service tax regime and vice -versa.
"Stamp duty is one of the few taxes with the state governments still have and they are very protective about that.
But having said, Can we bring the real estate into the GST scheme. Are we prepared for that in the backdrop of the demonetisation wouldn't be the idle step to go forward to bring also real estate.
The service tax has other stages of the real estate sector in the change," he added. We are doing the great experiments with matching of invoices, no other administration has attempted to this.
The matching of invoices will hope and ensure that need for the agency to intervene their entire process will be reduced considerably, said Shah.
Need for bringing in public domain the compliance rating of each customer, added chairman, Central Board of Excise and Customs.