FM says almost certain GST rate will be much less than 18 pct

NEW DELHI (Reuters) - Finance Minister Arun Jaitley said on Wednesday it was almost certain that the proposed Goods and Services Tax (GST) rate would be much less than 18 percent.

Jaitley said demand to scrap the 1 percent levy under the GST Bill is fair and the issue is "resolvable".

GST is intended to create a single market and boost commerce in India's $2 trillion economy, but the bill, which was passed by the lower house of parliament, has been blocked in the upper house where Prime Minister Narendra Modi's nationalist coalition lacks a majority.

The opposition Congress party wants to cap the rate of GST at less than 20 percent, scrap a proposed state levy and create an independent mechanism to resolve disputes on revenue sharing between states.

(Reporting by Rajesh Kumar Singh; Writing by Malini Menon; Editing by Subhranshu Sahu)