Finance Minister Nirmala Sitharaman on Tuesday dispelled concerns over a rise in Goods and Services Tax (GST), saying that there is not even one item on which the rate has been increased after the implementation of GST regime.
Intervening during Question Hour in Rajya Sabha, Nirmala Sitharaman stated that GST rates have been brought down and the average GST rate has come down to 11.3 per cent from 15.8 per cent (at the time of GST implementation).
"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.
She also explained that in the GST Council, finance ministers from state governments sit together and take a call.
"To the credit of every finance minister in the GST Council, I must say that they have gone into detail item by item to see where rate reduction can happen. Every finance minister from every state is doing his best so that GST can become simpler," she said.
She pointed out that if the GST Council has taken a bit longer than what all of us would decide, it is because work is going on there.
The finance ministers of the respective states are fully empowered to speak to the people in their state as to what is to be taken up by the Council, she stressed.
She also pointed out that the GST Council is a constitutional body.
She also said, "I would to take this opportunity to dispel this thought after GST implementation, rates have gone up. Not at all." She asked that is there an obstruction by the union government members, MOS and myself, to (where we have said) say no no, don't reduce the rate, we want to burden the consumer.
"Is there be an instance? One such instance," she said.
She also explained in the written reply on the oral question tabled in the House that as per Article 279A (4) of the Constitution of India, the GST Council shall make recommendations to the Union and the States, on rates, including floor rates with bands of goods and service tax.
Thus, the GST rates are notified by the Government based on the recommendations of the GST Council which comprises of representatives of the Union and State/UT Governments, she stated.
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