New Delhi: On Tuesday State finance ministers could not arrive at a consensus on the proceeds neutral rate of the proposed Goods and Services Tax. The Empowered Committee of State Finance Minister met to argue the Bill failed to arrive at accord on the capping of the GST rate in the Constitutional Amendment Bill as well. Chief Economic Advisor Arvind Subramanian, who heads the board, had recommended returns neutral rate of 15%-15.5% and a normal GST rate of 17%-18%. Kerala Finance Minister Thomas Isaac has also further conveyed that, all states were of the vision that the tax rates put forward by the Chief Economic Advisor are not satisfactory. There was no consensus on what the rate should be. It can be 18% or on top of that. That was the consensus. The Congress has long been demonstration for capping the GST rate. Isaac has also further conveyed that, the common view at the gathering was that the revenue neutral rate should be decreased from the GST so that it does not influence the widespread man or revenue structures of the states.
The state ministers though, decided on dual manage and a dispute-resolution mechanism in the Bill. West Bengal Finance Minister Amit Mitra, who is also chairman of the panel, also conveyed that, there was forever a position matter on the query of dual control. The unanimous decision of state finance ministers was that Rs 1.5 crore and underneath will be under state states will be the only entities that will look following the small commerce of states. He also conveyed that, the group has worked out a flat and consistent method for the Centre and the states to labor jointly to generate revenue from businesses worth more than Rs 1.5 crore. The states reportedly agree to decrease the proposed 1% supplementary tax to be levied for inter-state buy and sell of goods. The Bill will not be passed in the Rajya Sabha unless the Narendra Modi administration manages to garner enough support because the ruling Bharatiya Janata Party does not have a majority in the Upper House.