Bengaluru: Bihar Deputy Chief Minister and Head of GoM for tackling IT-related glitches Sushil Kumar Modi today ruled out doing away with frequent changes in tax rates under GST.
“The GST Council is competent enough and mandated to take the issues of GST rates. If GST Council feels to change the tax rates of some items, so be it. It is for the Council to decide on it,” he told reporters.
He was replying to a query whether GST Council is thinking if doing away with frequent changes in tax rates.
Some of the industry captains are raising concerns over the changing GST rates which was their businesses, as it affected their business prospects and confidence of companies.
Among them, Hyundai Motor India (HMIL), on September 12, had flayed frequent changes in tax rates on automobiles saying investment for new products and technology will be adversely impacted in the absence of consistent and long-term policy.
The GST Council last week had decided to hike cess on mid-size cars by 2 per cent, on large cars by 5 per cent and on SUVs by 7 per cent to bring tax rates on these cars at pre-GST levels.
Modi said even after two years of VAT implementation, there were many changes made in the previous tax regime, but ultimately it stabilised after initial hiccups.
On August 25, Minister of State for Finance Arjun Ram Meghwal at Kochi had also said government was “not adamant” on GST rates and it could be relooked by GST Council depending on revenue realisation.
“We have to see the revenue realisation first. Government is not adamant on the rates. We have a federal structure. We have to take the view of the states also in the GST council,” he had said.
