Congress demand for cap on GST preposterous: FM

In signs of no thaw with Congress on goods and services tax (GST), finance minister Arun Jaitley on Wednesday described as preposterous the party’s demand for putting a cap on tax rate in the Constitution Bill, saying nowhere in the world tariffs are mentioned in the statute. 

“Three new propositions are now raised (by Congress) including a preposterous one that tariff must be mentioned in Constitution of India. Now if they can tell me that anywhere else in the world this happens that tariffs are mentioned in Constitution. 

“So every time there is a drought, flood and you need to increase the tax rate, you have to first go to all states in India to change the tax rate. This is something which is just not possible,” he said. Jaitley said no tariff can ever be perpetual.