New Delhi – The Central government, has assured the nation that rationalized GST rates could be possible. The attempt to reach a decision that is mutually beneficial could be possible only when the tax implementation progresses, said GST officials on Wednesday.
The assurance has come from the finance minister Arun Jaitley himself. The statement had emerged out when a debate took place about GST bills implementation in Jammu and Kashmir. The bills that provoked the debate have been provided for an extension. These bills have been passed due to the voice votes. Once the bills are approved, they would replace the bills that have already existed in J&K.
The current rate of the tax varies depending on the products. Some products come with zero percent GST rate as well. Reminding this to the debating parties, Jaitley said that combining two rates would eventually increase the price of the products. This is the sole reason, why the government did not get into exercise. This has been the response to the GST rate criticism. He also said that in a country where so many people are below the poverty rate, one slab taxation cannot be achieved.
He also expressed his surprise at the price hike of individual hybrid cars. He said that those who can buy these cars could pay a little extra as well because hybrid cars are expensive. He maintains that the GST has been implemented to help domestic products to flourish in the market and restrict cheap foreign goods.
During the debate demand for elimination of Article 370, which has given J&K a special status, came up. To put a stop to the debate, it has been decided that the state would be given integrated status. The people would be able to join the mainstream only after the status has been changed.
Addressing the concern of the members, Jaitley admitted that he had been under severe pressure to change few network of GST. The tax implementation has seen mixed reaction across the country, and many have labeled it as faulty.
However, Jaitley does not agree with the fault accusation and maintains that the GST network is correct and would be kept as long as possible.