The Finance Ministry has released the report on the “Revenue Neutral Rate” for GST. This may be purely academic because the thought of going to jail has spooked the Congress High Command so much that they won’t let the bill pass – but let’s look at the key aspects of that paper. Its boring to read if you don’t get it but you’ll get the gist here: Kitna hai boss? Firstly, The Numbers. They’re Anywhere Between 15 and 19% Yes, that’s the point. The real number is mentioned as 17%. This is the table that matters: The funda is: You either charge EVERYTHING at 15% Or you put a 6% rate on gold and silver, a 12% rate on “low” rate goods which you like, a 40% rate on what you don’t like, and then a 16.9% on everything else. Or a 4% on gold, 12% “low” rate, 40% higher rate, and 17.3% on everything else etc. … (Read On…)
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