Prime Minister’s Economic Advisory Council has suggested that the government should have single rate when it comes to excise duty and service tax. But that also means that it should try and implement Goods and Services tax (GST) on a faster basis.

This is important considering the fact that the government is thinking of implementing the GST by April of next year. The suggestions appeared in the economic review of 2010-11 where C. Rangarajan, chairman of the PM’s Economic Advisory Council, said that a single rate should be applicable and that should be around 10 per cent.

At present, there is a difference between service tax rate and excise duty. While the first one stands at 10 per cent for most of the goods, excised duty is at 4 per cent when it comes to necessities. For others, the rate is at as high as 20 per cent.

Analysts have said that once there is single rate, there is going to be a single point administration.

Rangarajan also said in his statement that the rates should be rationalized and that can be done by changing them to ad- valorem.