After the first day of the three-day GST meet, Finance Minister Arun Jaitley today said the council has discussed the definition of state revenue today in the meet. The finance minister said that the annual state revenue growth is assumed to be 14 %.
To finalize the main rate of the Goods and Service Tax, the Finance ministry along with state finance ministry officials are gathered for a three day long council meet, paving a way for its introduction in April next year. Jaitley said there are five alternative rate structures presented before the council and the final structure will be decided after discussing and analyzing all of them.
Concerned over economic growth, the finance minister stressed on the point that the rate structure should be such as to not lead the country to another Consumer Price Index (CPI) inflation.
The base year of calculation will start at FY16 and Cross-control is yet to be resolved by the council.
The long delayed GST bill stands as a crucial bill as it attempts to transform Asia’s third largest economy into one single market for the first time. The Finance Minister said detailed discussion on the issue will continue tomorrow, the second day of the meeting.