With reference to GST what is Revenue Neutral Rate RNR ........

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With reference to GST, what is Revenue Neutral Rate (RNR)?

A tax rate that leaves the tax base unaltered

A common rate of tax to both the Central and State governments

A GST rate that would keep the revenue of State governments on par with that of the Central government

A single rate of tax that would preserve revenue at pre-GST levels

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Explanation:

The term revenue neutral rate (RNR) refers to that single rate, which preserves revenue at desired (current) levels. This was one of the major outcomes of the pre-GST negotiation between States and Centre, where the former were experiencing loss of revenue post-GST. The RNR should be distinguished from the “standard” rate defined as that rate in a GST regime which is applied to all goods and services whose taxation is not explicitly specified. Typically, the majority of the base (i.e., majority of goods and services) will be taxed at the standard rate, although this is not always true