One GST rate was a ridiculous suggestion: Goyal

Union Finance Minister Piyush Goyal on Monday said the demand for a single rate in Goods and Services Tax (GST) was a "ridiculous suggestion".

"There is a set of people who made ridiculous suggestion that there should be one rate of GST. It amazes me when the demand of single GST rate was raised," he said.

According to him, a single GST rate of 18 per cent would put burden on poor and middle class of the country as they would be required to pay high taxes on items of daily use.

According to him, the GST structure in the UPA regime was "not sensibly proposed" and the earlier form of GST would not have worked in the federal structure.

Slamming the UPA government, Goyal said the "mutual trust" between the Centre and states collapsed and one of the reason for that was dispute over Central Sales Tax compensation.

He also said the postponement of GST roll out, as suggested by some political parties, would exaggerate the problems.

Goyal said that rates on 328 items out of a total of 1,200, had been reduced after the implementation of the indirect tax regime in July last year.

"What stops us from elimination of slabs or further reduction in rates on more items if all the taxpayers pay their taxes," he added.

--IANS

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