CEA Arvind Subramanian submits GST recommendations; key takeaways

NEW DELHI: A key panel on GST ( Goods and Services Tax) headed by the chief economic advisor Arvind Subramanian today submitted its recommendations to the government.

The government is setting the stage for building consensus for this important reform to get the crucial constitutional amendment passed in the winter session.

Here are the key takeaways from the report:

a) CEA-headed panel recommends eliminating all taxes on inter-state trade.

b) GST panel has suggested standard rate of 17-18%

c) Panel not for specifying GST rate in Constitutional Amendment Bill

d) Panel recommends bringing alcohol, petroleum within GST

e) Committee suggests revenue neutral rate of 15-15.5% for GST

f) Allocation to states will depend on revenues raised by Centre and states

g) Two options for states: Single rate of 15% or a range of 17-18%

h) GST rate on precious metals to be in the range of 2-6%

i) Panel recommended removal of 1% additional levy

j) It suggests higher GST rates on tobacco, luxury cars, pan masala and aerated drinks

k) The panel kept alcohol, real estate out of GST to achieve 15% rate