Chandigarh, Aug 11: The Institute of Company Secretaries of India (ICSI) today said the GST rate should not be more than 18 per cent, otherwise it will cause rise in inflation.
"If RNR is 19 per cent or more, then we may have inflation in near term. We feel that the ideal RNR rate for GST should be 18 per cent and at this rate, we will not face inflation," ICSI President Mamta Binani said here today.
"If you pick up any country where GST was implemented, in first 3-5 years, there is inflation. But after that the inflation goes down. Inflation at 3-5 per cent is not very high but 3 per cent of inflation for our country, is mammoth."
ICSI further said the GST, once it is rolled out, will throw a lot of opportunities for Company Secretaries as they will be eligible to appear before GST authorities.
Binani said ICSI is going to hold 100 seminars on GST across the country this month to bring awareness among people about the new law which will subsume various levies like excise, service tax, sales tax, octroi, etc, and ensure a single indirect tax regime for the entire country.
"Besides, we will also start three-week online tutorials on GST," she said. She said ICSI is organising its 17th Annual National Conference of Practicing Company Secretaries on the theme "PCS @ Start-up - Accelerate - Outpace" from August 12-13 at Kasauli in Himachal Pradesh.
"India is one of the fastest growing economics in the world and entrepreneurship is a key in supporting and accelerating such unprecedented growth in India.
The government is promoting entrepreneurship which will help support employment, utilization of skills, skill development and boost FDI.
It is the right time now that Company Secretaries should optimally unleash the various opportunities offered by the government through its Start-up drive," she said.