Exclusive: GST to have dual rates for centre, states

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The government may opt for dual structure for its proposed goods and sales tax (GST) where it has different rates for the centre and states, reports Siddharth Zarabi. CNBC-TV18 exclusively reports that the dual GST will come through multiple statutes.

The tax will have a threshold of Rs 10 lakh gross annual turnover for goods and services nationwide. The central GST threshold for goods would be at Rs 1.5 crore, it is learnt.

There would be free flow of tax credit at the inter- and intra-state levels in the proposed structure and. Petro products would remain outside the ambit of the GST and states would continue to levy sales tax on such products. The decision of imposing GST on natural gas would be taken later.

The final rates of the state and central GST would be decided later though services, it is learnt, would have a single rate at the centre and states. Exports and SEZs may be zero-rated in the structure even as no benefit of domestic tariff area (DTA) sales to SEZs would be allowed.

The GST may take five years to be implemented and states would be compensated for losses during the period. The 13^th Finance Commission will decide on the compensation levels.

The list of products levied by GST would contain tobacco-related products though alcohol products would be removed.