A panel led by Chief Economic Advisor Arvind Subramanian is likely to submit its report of the goods and services tax (GST) rate as early as Friday, government officials told Business Standard.
The revenue neutral rate suggested by the panel could be in the range of 20-24 per cent, they said.
“The panel was originally supposed to give its report around September. There were delays because wide-ranging inputs and suggestions were required,” said a government official, who declined to be named.
Senior officials, who declined to be identified, say the panel will present suggestions for what is known as a revenue-neutral rate (RNR), as agreeable to all stakeholders as possible. The report would involve studying different proposals and taking into account expected levels of growth of the economy, different levels of compliance, and broadening of the tax base under a GST.
This could be around 20-24%, much lower than the RNR of almost 27% suggested by a sub-panel of the Empowered Committee of State Finance Ministers on the GST. A final decision will be taken by the GST Council.
Finance Minister Arun Jaitley had said earlier this year that a 27% rate was too high, while his state counterparts say anything less than 25% would lead to loss of revenue for them.