Finance Minister Nirmala Sitharaman dismissed concerns about any rise in Goods and Services Tax (GST) rates, asserting that not even one item has seen a rise since the introduction of the GST regime.
While addressing the question hour in the Rajya Sabha, she mentioned that the GST rates have been lessened, drawing the average rate down from 15.8% during the execution to 11.3%.
“That is the level of rate of reduction in the GST Council. Therefore I appeal to all the members here, kindly spare some time, meet your respective finance ministers in the states as to what kind of work is going,” she said.
It was outlined by FM Sitharaman that the decisions of the GST are incurred in the GST council where the state finance ministers plan on every information to ease the tax system. She has applauded the members of the council for their meticulous work in finding the field where the tax reductions can be executed.
She cited that “If the GST Council has taken longer to decide on certain matters, it is because thorough work is being done,” citing that the state finance ministers have the authority to involve their people in the cases to be discussed in the council.
Sitharaman denied claims that tax rates had increased after GST implementation emphasizing that the GST Council is a constitutional body.
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“I would to take this opportunity to dispel the thought after GST implementation, rates have gone up. Not at all.” she expressed. She also contested anyone to quote an instance where the Union government blocked tax reductions, asking, “Is there be an instance? One such instance.”
Sitharaman in a written reply to the House, repeated that, under Article 279A (4) of the Constitution, the GST Council suggests tax rates, including floor rates, to both the Union and State governments.
She elaborated the final GST rates notification is grounded on such suggestions with the representations from both the central and state governments.