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GST rate won't pinch masses: Shome
January, 18th 2007

The unified goods and service tax regime may not prove to be a tough one for consumers. The government, which is working on the road map for the rollout of the unified tax in 2010, is likely to keep the GST rate moderate, reports Our Bureau.

We have to think of a rate that is not too high and at the same time appropriate for meeting state expenditure, advisor to finance Minister Parthasarthi Shome said on Tuesday while releasing a report on GST by Assocham. Enlisting the challenges in the implementation of GST, he said one of the biggest tasks was to conceptualise a model, which will fetch adequate revenues for the Centre and states but would not be too high.

Besides, the tax structure and rate, and tax assignment vis-a-vis revenue share also need to be worked out. It has to be seen whether there was a need to amend the Constitution or bring GST within the existing legislative framework.

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