Govt likely to bring down GST at 20 pc

New Delhi, Mar 8 (UNI) The government will likely levy the Goods and Services Tax (GST) at 20 per cent, with the combined excise and service tax at about 22 per cent.

''The combined incidence of central excise and service tax at present is about 22 per cent and to bring it down to 20 per cent will not be a problem,'' said Revenue Secretary K M Chandrashekhar at a Post Budget meeting organised by PHDCCI, here.

Mr Chandrasekhar said the Finance Ministry in consultation with states will come out with a clear road map for implementation of GST.

After the success of value added tax system, states will be keen to have GST in the country. The Finance Ministry has given the responsibility for implementation and designing of GST to the Empowered Committee of State Finance Ministers.

While speaking on the direct taxes he said the dividends distribution tax should be viewed not as a corporate tax rate but as surrogate tax which would have been otherwise applicable on recipient of dividends at marginal tax rate of 30 per cent.

Therefore, even the enhanced rate of 15 per cent is reasonable.

He further added there would be no double taxation resulting from imposition of fringe benefit tax on employees stock options (ESOPs) as the portion of ESOPs being taxed as fringe benefit tax will be excluded from calculation of capital gains tax.

The department will shortly come out with explanatory notes on this issue, he asserted.

UNI