Tribune News Service
New Delhi, December 9
The report by Chief Economic Adviser has said that the implementation of goods and services tax (GST) can be an effective way of curbing black money and corruption.The government today made public the report of the panel head by Chief Economic Adviser Arvind Subramanian on GST rates which provides more details on proposed rates and structure of the regime.Last week, Subramanian had submitted the report to Finance Minister Arun Jaitley proposing a standard rate of 17-18% for GST.The report says that government has placed a great deal of emphasis on curbing black money reflected in the Black Money Bill.The panel said, “These measures can be very significantly complemented by a GST, which, especially if it is extended to as many goods and services as possible (especially alcohol, real estate and precious metals), can be a less intrusive, more self-policing, and hence more effective way of reducing graft and rent-seeking.”The report said under the GST, this could happen in two ways. The first relates to the self-policing incentive inherent to a valued-added tax. To claim input tax credit, each dealer has an incentive to request documentation from the dealer behind him in the value-added/tax chain.