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According to Debroy, multiple rates emanate from the 'desire to tax items' that are seen as luxuries Latest news    :   NITI Aayog member and wellknown economist Bibek Debroy on Friday said that one of the key problems with the present GST (Goods and Services Tax) regime is its multiple rates structure. According to Debroy, the multiple rates of GST emanate from the "desire to tax items" which are perceived to be luxury through the means of indirect tax and not the direct ones. "Please understand these multiple rates are coming from... this desire to drive other ends through indirect tax policy and other concerns of the states," Debroy said at Aaj Tak GST Conclave. "And therefore, you have plenty of exemptions, plenty of items that are outside the GST net and multiple rates." The present GST tax rates are divided into four slabs of -- 5 per cent, 12 per cent, 18 per cent and 28 per cent -- as decided by the GST Council. Als...

' India currently has one of the worst tax-to-GDP ratios among major economies at 16.6% Latest news : Rakesh Sachdeva sells auto parts in a busy market in central Delhi, just a few miles from Prime Minister Narendra Modi's office. Yet despite having a flourishing business he does not pay any tax. Until now, his rundown premises and small scale operation has kept the business below the radar of the country's tax officials. Come July 1, however, "the party will be over", says the 51-year-old, with a resigned shrug. A nationwide Goods and Services Tax (GST), set to come into effect on Saturday, has faced criticism for its complex design. But the country's biggest tax reform since independence is promising to bring millions of firms like Sachdeva's into the tax net, boosting government revenues and the country's sovereign credit profile. The new tax will require firms to upload their invoices every month to a portal that will match ...