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Multiple rate GST will be disastrous: Chidambaram

Multiple rate GST will be disastrous: Chidambaram
<div style="color: #444444; font-family: "Segoe UI", Verdana, Helvetica, sans-serif; font-size: 14px; background-color: #ffffff;">"We sincerely hope that we do not misinterpret the design of standard, standard minus and plus rates of GST. We can have 20 rates. It will be disastrous and that cannot be GST, it will be fooling the country," Chidambaram told an interactive session with IIM Calcutta students on economic reforms.
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<div style="color: #444444; font-family: "Segoe UI", Verdana, Helvetica, sans-serif; font-size: 14px; background-color: #ffffff;">"A well designed GST is expected to have standard rate, plus and minus standard rate. That latitude interpreted to me as multiple rate - zero to 100 - that's not GST. That is simply existing VAT rates in a new shape, old wine in a new bottle," he said.
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<div style="color: #444444; font-family: "Segoe UI", Verdana, Helvetica, sans-serif; font-size: 14px; background-color: #ffffff;">He said he hoped better counsel would prevail which would reduce the number of rates to "three or so".
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<div style="color: #444444; font-family: "Segoe UI", Verdana, Helvetica, sans-serif; font-size: 14px; background-color: #ffffff;">The new Goods and Services Tax (GST) will subsume a number of indirect taxes at the state as well as central level and is targeted for rollout from April 1, 2017.
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<div style="color: #444444; font-family: "Segoe UI", Verdana, Helvetica, sans-serif; font-size: 14px; background-color: #ffffff;">About states disagreeing and joining the second wave of GST reform, Chidambaram said that even when UPA had implemented VAT, some had not joined initially and they had joined later, and so eventually all states will fall in line.
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<div style="color: #444444; font-family: "Segoe UI", Verdana, Helvetica, sans-serif; font-size: 14px; background-color: #ffffff;">"Whatever, be the standard rates it will raise service tax," he said.<div style="color: #444444; font-family: "Segoe UI", Verdana, Helvetica, sans-serif; font-size: 14px; background-color: #ffffff;">
<div style="color: #444444; font-family: "Segoe UI", Verdana, Helvetica, sans-serif; font-size: 14px; background-color: #ffffff;">At the GST Council meeting last week, there was virtual consensus among states on imposing of the cess, which tax experts and industry have opposed vehemently, saying it defeats the very concept of one-nation, one-tax.<div style="color: #444444; font-family: "Segoe UI", Verdana, Helvetica, sans-serif; font-size: 14px; background-color: #ffffff;">
<div style="color: #444444; font-family: "Segoe UI", Verdana, Helvetica, sans-serif; font-size: 14px; background-color: #ffffff;">Besides, a four-slab tax structure of 6, 12, 18 and 26 per cent with lower tariff for essential items and the highest bracket for luxury and sin goods also found favour with them but a decision was put off to the next meeting on November 3-4.
PTI

PTI

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