Four-tier GST rate structure will lead to disputes: Reports

Posted by: Religare
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A research paper has said that the four-tier GST rate structure will open up floodgates of classification disputes with tendency among businesses to demand lower rate for their goods or services.

Four-tier GST rate structure will lead to disputes: Reports

As per reports, four tax rates have been proposed under the Goods and Services Tax regime that is to introduced later this year.

Commenting on the issue, NIPFP associate professor Sacchidananda Mukherjee told the media, "Present discussion on two standard GST rates (12 per cent and 18 per cent), a lower rate (5 per cent) and a higher rate (28 per cent) in addition to exemptions will make the design of GST complicated and increase the cost of compliance as well as cost of tax administration."

"It is expected that, if accepted, the proposal will open up floodgates of classification disputes and there will be always be a tendency among businesses to demand lower rate for their good or service," he added.

Read more about: tax, gst, nipfp
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