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Delhi, Cong-run states demand a lower peak GST rate

Press Trust of India  |  Guwahati 

joined the growing chorus of opposition against the highest 28 per cent rate, saying a high rate would encourage black marketing.

The Congress-ruled states have been demanding rationalisation of rates to bring down the peak rate from current 28 per cent.


deputy chief minister Manish Sisodia, who is here to attend the crucial meeting of the Council, said lower rates should have been implemented from July 1, when the Goods and Services (GST) was rolled out.

"rates should have been set lower from July 1itself and I have said that 28 per cent rate means you are encouraging black marketing," he said.

The Congress-ruled states of and Karnataka, and UT have demanded complete overhaul of the rate structure and simplification of the procedures.

Chief Minister said the peak rate should be 18 per cent except for one or two demerit items, which could attract a higher 28 per cent

"But most of the items were brought under the 28 per cent category (under GST) which the is not agreeing to," he said.

Also, the return filing procedure in is cumbersome, he said.

Common use goods are being charged 28 per cent tax, he said, adding construction industry, toiletries are all charged the peak rate.

"Common man is affected. was brought to simplify procedures and to facilitate common people to purchase items" but that is not happening, he added.

Sisodia said limits imposed for availing of the composition scheme need to be widely discussed, with a separate structure for SMEs.

"I have always said bring real estate in because if you put 28 per cent on construction activities and then suddenly it goes into a black hole because there's no counting of where that is going," he said.

On returns filing, he said the government was in favour of quarterly filings instead of current mandate for three different forms being submitted every month.

"The current return filing system has created confusion among businesses."

Sisodia said petroleum products, alcohol and real estate should be brought under the as it is one nation, one and such items cannot be kept out of the regime.

In the run-up to the assembly elections in Gujarat and Himachal Pradesh, opposition and its leaders have been targeting the government over difficulties faced by some businesses under the regime, with party vice-president Rahul Gandhi even calling it a 'Gabbar-Singh Tax'.

Finance Minister Manpreet Singh Badal said his state wants rationalisation of rate, simplification of procedures and removing glitches in GST-Network.

The Congress, he said, was in favour of inclusion of petrol, diesel, natural gas, ATF and crude oil in the

The five products along with alcohol have been kept out of for now.

Agriculture Minister Krishna Byre Gowda said the had earlier asked that the rate should not be more than 18 per cent but the government went ahead with the five rate slabs of 0, 5, 12, 18 and 28 per cent.

The Council, headed by Union Finance Minister Arun Jaitley, is meeting here to consider pruning the list of items in the 28 per cent bracket.

Haryana Finance Minister Capt Abhimanyu said the meetings cannot be related to any election because Council is represented by states and the Centre.

"The same spirit of unanimity should continue," he said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, November 10 2017. 13:13 IST
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