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Single GST Rate Not Possible In A Country Like India: Piyush Goyal

Single GST Rate Not Possible In A Country Like India: Piyush Goyal

Union Finance Minister Piyush Goyal today said that the proposal of some political parties for a single GST rate slab was a “ridiculous suggestion”.

Some political outfits had been clamouring for doing Single GST Rate Not Possible In A Country Like India: Piyush Goyalaway with the four-slab Goods and Services Tax (GST) rate structure and the Congress had promised to reduce it to one slab if voted to power in 2019.

“One rate of tax is a ridiculous suggestion. It would be a burden on the poor and the middle class if items of daily use like salt, sugar, and clothes were taxed at 18 per cent,” Mr Goyal said at an Indian Chamber of Commerce event in Kolkata.

He said that the past Congress-led UPA government had proposed a 18 per cent single GST slab looking at the tax collections and concessions given to the poor.

“The rate proposed earlier would not have been accepted. Also, the GST structure would not have worked,” Mr. Goyal, who also holds charges of coal, railways and corporate affairs ministries, said.

Mr. Goyal has been looking after the finance ministry owing to Arun Jaitley’s indisposition.

“How is it that Mercedes Benz and aircraft becoming cheaper by a single rate. This would have been the worst for of governance,” he said.

However, Mr. Goyal said rates of 328 items out of a total of 1,200 had been reduced after the implementation of GST in July last year.

“What stops us from the elimination of slabs or further reduction in rates on more items is if all the taxpayers pay their taxes,” he asked. India could really be a low tax nation, he said.

Source: NDTV

Single GST rate would be better, says Former Chief Economic Adviser Arvind Virmani

Single GST rate would be better, says Former Chief Economic Adviser Arvind Virmani

Single GST

Former Chief Economic Adviser and noted economist Arvind Virmani, who worked initially on the Goods and Services Tax (GST) as the biggest indirect tax reform, is not happy with the government pushing for four different slabs of the new tax rates. He regrets that the rates of 5, 12, 18 and 28 proposed in the GST Council meetings are ‘messier.’

He insists on a single rate across the board and says the government can still do it in the Bills to be brought before Parliament instead of keeping a very high rate of 28 per cent. Instead of categorising items into different tax rates, he suggests that a better alternative would have been to put special surcharges on selected 5-10 items.

Pointing out that a single rate makes accounting very easy as it puts an end to the confusion caused by the multiplicity of rates, Dr Virmani said: “I had recommended retention of a few special sales taxes on specified goods such as liquor, tobacco products, polluting fuels and consumer goods such as cars.”

Source : https://goo.gl/Tcl3yr