GST has arrived with various comments which are not supporting its implementation as the former finance minister P Chidambaram clearly stated a negative opinion about the upcoming taxation regime. He said in a statement that, “The proposed multiple rate GST structure will be “disastrous” and nothing more than same old VAT rates in a “new shape.”
He also said some negative lines about the layering of GST rates, “We sincerely hope that we do not misinterpret the design of standard, standard minus and plus rates of GST. We can have 20 rates. It will be disastrous and that cannot be GST, it will be fooling the country, A well designed GST is expected to have a standard rate, plus and minus standard rate. That latitude interpreted to me as multiple rates — zero to 100 — that’s not GST. That is simply existing VAT rates in a new shape, old wine in a new bottle.”
In the last meeting of GST council the consensus about the cess issue was not properly resolved and to better understand the issue the GST council will hold a meeting in coming November. The meeting will most likely to resolve major issues.
While in an amusing turn, the Aayog vice chairman and imminent economist Arvind Panagariya has given a support to the multiple GST rate structure which is said to be not suitable by the P Chidambaram. The argument he stated that “A four slab rate structure for GST is better than going in one go on to a single rate as in the latter price effect on specific products could be substantial.”
However, the raging voice is saying that the concept of unified single tax idea will be diluted by the multiple rate structure but with some witty statements, Panagariya said, “the revenues loss prospects under four slabs will be much less as opposed to the single rate, would be predictable and would give a better picture of what the unified rate could be going forward. “GST is a process and we are gradually heading towards it,”
He was also seen very positive about the government efforts to complete the task of GST implementation on 1 April next year and said that “It’s a little bit of race against time but certainly well within the realm if possibility,”
