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FinMin to set up expert group on common tax code
March, 21st 2012

The Finance Ministry will set up a study group to see the feasibility of common tax code for goods and services as it moves towards introducing India's major indirect tax reform.

"The finance minister has announced setting-up a study group which will study whether there can be common tax code for the central excise tax and the introduction of GST," chairman of Central Board of Excise and Customs, S K Goel said at a post-budget conference organised by PHD Chamber of Commerce and Industry here today.

GST will replace all indirect taxes levied on goods and services by the central and the state governments.

On hike in excise and service tax rate to 12 per cent, he said that the finance minister did not raise it to the pre-crisis level of 14 per cent as it would have curtailed the demand.

The PHD Chamber, however, said that the additional service tax liability of two per cent would adversely impact the industry at large.

 
 
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