<p>Industries Minister R V Deshpande on Saturday said the Goods and Services Tax (GST) rate should be fixed at around 18%. Deshpande said a higher rate will lead to inflation and hence, burden the common man.<br /><br /></p>.<p>Chief Economic Advisor Arvind Subramanian had proposed that the GST rate be fixed at 18%, but some states, including Kerala, have been demanding a higher rate. <br /><br />The minister said the rate will be fixed by the GST Council, which will be set up in the coming days. Deshpande said Karnataka will convey its stand to the council, which comprises representatives from the Union and state governments. <br /><br />He said the GST will bring in a major reform in the tax system in the country, and usher in a hassle-free order wherein both the consumers and industry stand to benefit. The price of many consumer goods are expected to come down once the new tax regime comes into effect, he said. <br /><br />“Now that the GST Constitutional Amendment Bill has been passed in the Rajya Sabha, the Centre and states have the responsibility to ensure its implementation. At least 50% of the state legislatures should give its approval for implementing the GST,” the minister said.<br /><br />Asked whether the GST will adversely impact the state government’s revenue, he said the Centre has assured to compensate loss in revenue, if any, to the states for five years. <br /></p>
<p>Industries Minister R V Deshpande on Saturday said the Goods and Services Tax (GST) rate should be fixed at around 18%. Deshpande said a higher rate will lead to inflation and hence, burden the common man.<br /><br /></p>.<p>Chief Economic Advisor Arvind Subramanian had proposed that the GST rate be fixed at 18%, but some states, including Kerala, have been demanding a higher rate. <br /><br />The minister said the rate will be fixed by the GST Council, which will be set up in the coming days. Deshpande said Karnataka will convey its stand to the council, which comprises representatives from the Union and state governments. <br /><br />He said the GST will bring in a major reform in the tax system in the country, and usher in a hassle-free order wherein both the consumers and industry stand to benefit. The price of many consumer goods are expected to come down once the new tax regime comes into effect, he said. <br /><br />“Now that the GST Constitutional Amendment Bill has been passed in the Rajya Sabha, the Centre and states have the responsibility to ensure its implementation. At least 50% of the state legislatures should give its approval for implementing the GST,” the minister said.<br /><br />Asked whether the GST will adversely impact the state government’s revenue, he said the Centre has assured to compensate loss in revenue, if any, to the states for five years. <br /></p>
