Letters: A self-defeating move?

Possibility of increasing GST rates in the near future cannot be ruled out

With reference to the report, “GST changes: Enabling provision for peak 40% rate” (March 3) by Dilasha Seth and PTI, it’s intriguing to learn that various enabling provisions of the proposed goods and services tax have been getting murkier. GST, perceived to be a “one nation, one tax” mega project of the Bharatiya Janata Party government at the Centre, has witnessed drastic changes in tax slabs, which were thought to be legitimate in the initial stages and in the category-wise “coverage” of the various goods and services at the level of the Centre and states. Perhaps, it has become difficult to unravel the mystery of the much talked-about GST regime.

The latest news indicating that the GST Council, chaired by Finance Minister Arun Jaitley, is likely to get the power to raise the rate up to 40 per cent for any item in future without the need for parliamentary approval, has not been welcomed by experts, who want the rates to be moderate even in future. Their concerns merit the GST Council’s consideration.

However, the possibility of increasing GST rates in the near future, at least up to the “revised” peak rates, cannot be ruled out. But why is the government keen to technically skip even the parliamentary scrutiny of the implementation of its indirect taxation scheme at any time after its scheduled date of roll-out on July 1? Why could these rates not be rationally kept at reasonable levels, which might facilitate the invocation of requisite amendments in future? 

Is the government wary of striking the wrong chords by treating GST as a panacea for the existing multiple indirect tax system, even by “re-fixing” its ceiling as high as 40 per cent? Isn’t such a move self-defeating? Higher the rates higher would be the revenue collected by the Centre and cash-starved states. It would be a win-win situation for both, but a huge cost for the masses.

Kumar Gupt   Panchkula

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