GST multi-tier structure has been questioned by senior Congress leader Chidambaram, as he mentioned, “The proposed GST structure with “higher rates” has left “a lot to be desired” and there is a room for improvement in the multi-tier tax framework.”
“I think there is a room for improvement, I think there is a lot to be desired in that higher rates. I agree that initially we will have more than one rate. In fact, I said in Parliament that you must have a standard, standard minus and standard plus.” he added.
He was in doubt regarding the final rates announced and continuously quoting the government half-hearted approach towards the settlement of the GST rate structure. The former finance minister also cleared that, “Since GST is being introduced in India, I had said that there could be standard, standard minus and standard plus. If you include 0, that will make it (slab) four. Now four has become five and it looks it might go up to seven or eight. All these things should be reconsidered.”
The Goods and Service Tax has caused a great amount of ripples across the nation and every political party is very much concerned about its applicability and effects. The tax structure is likely to be implemented from 1 April 2017 which will further subsume all the indirect local taxes currently prevailing in the country.