New Delhi, Oct 19 (IANS) The Congress on Wednesday said the government has not consulted it on different rates of tax structure under the Goods and Services Tax (GST) regime, and warned that any attempt to exceed reasonbable taxation rate limit will lead to opposition.
A four-tier structure for Goods and Services Tax (GST) with lowest rate of six per cent, two standard rates of 12 per cent and 18 per cent, and a higher rate of 26 per cent with an additional cess for luxury goods were proposed at the meeting of the GST Council on Tuesday.
"We have not been consulted. Let us get to hear from the government. We do not know the degree of consensus or lack of it in the GST Council. However, ultimately all decisions have to come through the parliamentary act that is yet to be passed," said Congress spokesperson Abhishek Manu Singhvi.
"In the event the government ignore the concerns of political parties or the government exceeds reasonbable limits of rate of taxation or reduces the efficacy of the levy, they may face problems and issues in parliament when the law comes for passage," he added.
The Congress had earlier demanded an 18 per cent cap on the GST rate.
"We have said either the rate or some cap must be mentioned in the act," said Singhvi.
The Goods and Services Tax (GST) Council has almost reached a consensus on compensating states for loss of revenue under the new revenue collection regime, which will permit a decision on the new tax structure at the next meeting, Union Finance Minister Arun Jaitley said on Wednesday.
"The Council meeting today discussed the issue relating to different rates of tax structure. Rates also depend on the source of funds, on the basis of which compensation to losing states will be funded. Decision on a rate structure is possible once this is decided," Jaitley told reporters here after the meeting.