Jaitley rules out single GST rate

Tribune News Service

New Delhi, January 2 

Finance Minister Arun Jaitley today said while the question of a single GST slab in India does not arise, the process of rate rationalisation will continue.

He said a single GST rate was not viable in a large and diverse country like India where substantial population lived below poverty line. He ruled out having a single rate for all commodities under the goods and services tax (GST) saying items like food products would always be at minimum rates, while luxury items would remain in higher categories.

During question hour in the Rajya Sabha, Finance Minister Arun Jaitley said there were countries that had applied a uniform tax rate on all commodities, but these were nations where the entire population was above poverty line.

In India, food items have been placed in zero or the minimum slab while luxury items get taxed more, he said.

Many items that were earlier in the 28 per cent bracket were brought into 18 per cent bracket and the process of rate rationalisation would continue. Depositing taxes on a quarterly basis under the GST was not viable as the Centre and state governments had monthly expenses that could not be postponed.

He said the GST council had formed a committee under the convenership of AB Pandey, chairman GSTN, to look into issues relating to the filing of returns and suggest a simpler mechanism to mitigate compliance requirements for taxpayers.

“The committee shall recommend changes to be made in the process of filing of GST returns, including the threshold, if any, for quarterly filing,” he said.

The report of the committee would be placed before the GST council for making recommendations on the issue, he said.