GST rollout: A race against time

The government is keen on introducing GST from April 1, 2016, and while it may have started getting the back-end infrastructure in place to roll out this landmark tax reform, a lot still depends on the various committees that have been set up to finalise on revenue neutral rates.

CNBC-TV18 learns that the National Institute of Public Finance and Policy (NIPFP), which has been entrusted with recommending on revenue neutral rates, is likely to file its report soon perhaps by this month-end. Sources say, NIPFP may recommend higher GST rate luxury goods and additional tax rate may be levied over GST for tobacco. Low service tax rate may be recommended for essential services, sources add.

Rajya Sabha Select Panel may also submit report by later this month, sources say. A Chief Economic Advisor or Arvind Subramanian-headed panel is also likely to meet this week and submit its recommendations by August-end. The panel will be meeting representatives from Tamil Nadu, Karnataka, Kerala and West Bengal.