Multiplicity of GST rates is a challenge, says former RBI Deputy Governor Rakesh Mohan

By: |
New Delhi | August 09, 2017 3:14 PM

Former RBI Deputy Governor Rakesh Mohan on Wednesday said the GST rollout was a colossal task achieved after over a decade but the multiplicity of rates still remained a challenge.

GST, GST news, GST rollout, GST india, GST rates, multiplicity of GST rates, multiplicity of gst rates, rbi, former RBI Deputy Governor Rakesh MohanFormer RBI Deputy Governor Rakesh Mohan said India needed to focus on health and education to achieve a higher growth rate. (Source: IE)

Former RBI Deputy Governor Rakesh Mohan on Wednesday said the GST rollout was a colossal task achieved after over a decade but the multiplicity of rates still remained a challenge. “GST has been achieved after a decade. Multiple rates is an issue,” Mohan said here at the ‘Economics and Governance’ event organised by Penguin publishers. The Goods and Services Tax has tax-slabs of 5, 12, 18 and 28 per cent. Gold is at a special rate of 3 per cent. In addition to the tax rates, there is also a cess rate on luxury and sin goods like high-end cars, aerated drinks and tobacco and tobacco products which results in further variations in effective rates of taxation under the new indirect tax regime.

The former RBI officer said India needed to focus on health and education to achieve a higher growth rate. “Health and education is a challenge. We have the worst health and education indices. India can’t grow at 10 per cent without major improvements in these sectors,” he said.

“Improving the two sectors is the biggest task before us in the next five years,” he added. “Agriculture also has been completely neglected so far.”

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Bank of England keeps UK rates at record low of 0.1%
2States’ revenues set to cross pre-pandemic level this fiscal: Report
3S&P cuts India’s FY22 growth forecast to 9.5 pc