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FM Dismisses GST Hike Concerns, Highlights Reduction in Rate from 15.8% to 11.3%

'No Increase': FM Sitharaman Dismisses Concerns Over GST Hike

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.

Read Also: GST Council to Discuss Soon Rates and Number of Slabs: FM Sitharaman

“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.

Disclaimer:- "All the information given is from credible and authentic resources and has been published after moderation. Any change in detail or information other than fact must be considered a human error. The blog we write is to provide updated information. You can raise any query on matters related to blog content. Also, note that we don’t provide any type of consultancy so we are sorry for being unable to reply to consultancy queries. Also, we do mention that our replies are solely on a practical basis and we advise you to cross verify with professional authorities for a fact check."

Published by Arpit Kulshrestha
Arpit Kulshrestha seeks higher interests in financial services, taxation, GST, I-T, etc. Writes articles with depth knowledge and is extensive for the same. The resources provide effective articles for the products of SAG infotech which provides taxation and IT software. Writing from observations and researching makes his articles virtuous. View more posts
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