India to reassess Service Tax and Excise exemption in time for GST roll out
With an eye on this month’s Indian budget, the tax authorities are looking at removing a number of exemptions from Indian Service Tax and Excise tax. This would put the goods under question in line for plans for the new Indian Goods & Services Tax regime, planned fro 2014.
The goods being reviewed for tax exemption include packaged foods and mobile telephones, which are either exempt or at reduced tax rates. The new GST rate could be 16%, and is set to replace a number of central and local state taxes.
The central and state authorities this month reached a crucial breakthrough on key issues on the implementation of GST (e.g. option for states to opt out), meaning the much delayed process can proceed.