Fixing the GST rate, deciding on exempt items and ensuring no dual control by the Centre and states are among the seven key challenges which have to be overcome before GST can be rolled out by April 1, 2017, a top Finance Ministry official said on Thursday.
Setting a target of April 1, 2017 for rollout of the Goods and Services Tax, the government today unveiled a detailed roadmap for its implementation and said it is aiming for an "optimal" rate of taxation though the final decision will be taken by the GST Council.
Moody's Investors Service on Thursday said the GST implementation will be positive for the country's economic growth without any significant impact on inflation, but cautioned that other "controversial reforms" may witness a slower progress.
The Goods and Services Tax (GST), which will subsume over a dozen central and state levies including excise duty, service tax and VAT, is "perhaps the most important" tax reform, he said soon after Rajya Sabha overwhelmingly voted for the legislation.
In the biggest tax reform since Independence, the national sales tax or GST Bill was Wednesday approved by the Rajya Sabha to replace a raft of different state and local taxes with a single unified value added tax system to turn the country into world's biggest single market.