A fourth category for services is under considerationFollowing the President’s assent to constitutional amendment enabling the roll-out of the Goods & Services Tax (GST), India’s move to introduce the new indirect tax is all set to enter a crucial stage. The Union Cabinet is likely to take up in its next meeting on Monday the constitution of the GST Council. The GST Council will have to decide if it would be politically feasible to tax the service at the standard GST rate, which could be 18 per cent or even higher. States would like to see the GST rate closer to 20 per cent as they are concerned about revenue collections after the transition. Several states have expressed their worries over the calculations of the revenue neutral rate for the GST.

Source: The Hindu September 11, 2016 17:26 UTC