New Delhi: Finance minister Nirmala Sitharaman dismissed concerns over any rise in Goods and Services Tax (GST) rates, claiming that not even one item has seen an increase since the introduction of the GST regime.
Speaking during question hour in the Rajya Sabha on Tuesday, she highlighted that the GST rates have instead been reduced, bringing the average rate down from 15.8 per cent at the time of implementation to 11.3 per cent now.
“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.
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FM Sitharaman emphasised that decisions concerning the GST are made collectively in the GST Council, where state finance ministers plan on every detail to simplify the tax system. She credited the council members for their meticulous work in identifying areas where tax reductions could be implemented.
“If the GST Council has taken longer to decide on certain matters, it is because thorough work is being done,” she explained, adding that state finance ministers have full authority to engage with their people on matters to be discussed in the council.
Stressing that the GST Council is a constitutional body, Sitharaman refuted claims that tax rates had increased post-GST implementation.
“I would to take this opportunity to dispel this thought after GST implementation, rates have gone up. Not at all.” she asserted.
She also challenged anyone to cite an instance where the Union government obstructed tax reductions, asking, “Is there be an instance? One such instance.”
In a written reply to the House, Sitharaman reiterated that, under Article 279A (4) of the Constitution, the GST Council recommends tax rates, including floor rates, to both the Union and State governments.
The final notification of GST rates, she explained, is based on these recommendations, with representation from both central and state governments.
