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These reforms surely led to improvement in the structure of central taxes. With the reforms of central taxes, the focus was shifted to the reform of state taxes, particularly the sales tax. This was because, the sales tax contributes nearly 60 of the States Own Revenues and almost one third of the domestic trade taxes.
Empowered Committee decided to rationalize the further rate structure under VAT to 5 rates: Nil for certain goods. 1 for gold, silver and precious stones. 4 papers for certain essential goods and industrial inputs. 20 for liquor and some petroleum products. A Revenue Neutral Rates (RNR) of 10 to 12.5 for other goods. In the budget.
The Research Paper Factory. Join; Search. It is in this background that the present paper tries to explain the significance of GST in and. Introduction.