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If GST Council feels the need to change tax rates, it will:

Press Trust of India  |  Bengaluru 

Deputy Chief Minister and head of the Group of Ministers for tackling IT-related glitches in network, Sushil Kumar Modi today ruled out doing away with frequent changes in rates under

"The Council is competent enough and mandated to take up the issues of GST rates. If the Council feels the need to change the rates of some items, so be it. It is for the Council to decide on it," he told reporters.

He was replying to a query on whether the was thinking of doing away with frequent changes in rates.

Some of the industry captains have raised concerns over the changing GST rates, as it affected their business prospects and the confidence of companies.

Among them, Motor Limited (HMIL), on September 12, had flayed frequent changes in tax rates on automobiles saying investment on new products and technology will be adversely impacted in the absence of consistent and long-term policy.

The had last week decided to hike cess on mid-size cars by 2 per cent, on large cars by 5 per cent and on SUVs by 7 per cent to bring tax rates on these cars at pre-GST levels.

Modi said even after two years of VAT implementation, there were several changes made in the previous tax regime, but ultimately it stabilised after initial hiccups.

On August 25, Minister of State for Finance Arjun Ram Meghwal at Kochi had also said that the government was "not adamant" on GST rates and it could be re-looked by the GST Council depending on revenue realisation.

"We have to see the revenue realisation first... The government is not adamant on the rates. We have a federal structure. We have to take the view of the states also in the GST council," he had said.

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

First Published: Sat, September 16 2017. 20:13 IST