Dr. Arvind Subramanian Committee Report on Revenue Neutral Rates (RNR) and Structure of GST Rates
Ahead of the possible implementation of the Goods and Services Tax (GST), the GoI appointed a Committee headed by Dr. Arvind Subramanian with the following terms of reference:
(a) The Committee may recommend possible tax rates under GST that would be consistent with the present level of revenue collection of Centre and States.
(b) While recommending GST rates the Committee may develop a dynamic model to assess the impact of the following parameters on the tax rates viz. expected levels of growth of economy, different levels of compliance and broadening of tax base under GST.
(c) Analyse the sector-wise and State-wise impact of GST on the economy.
(d) The Committee may invite experts and stakeholders for consultations as it deems fit.
Based on certain assumption and analysis, the committee on GST headed by Dr. Arvind Subramanian has concluded that the RNR for the Centre and the State is estimated to be 5.64 per cent and 6.34 per cent, respectively. The combined RNR is determined at 11.98 per cent.