Arun Jaitley promises no surprises in New GST tax rates

Vastavam web: Finance Minister Arun Jaitley on Friday promised not to spring any surprises in fixing tax rates under the new GST regime, saying they will not be “significantly different” from current levels.He, however, said companies should pass on to consumers the benefit of reduction in taxes under GST which will eliminate the current compounding effect of different central and state levies.Speaking at CII’s Annual Meeting, he said rules and regulations governing GST have all been framed.”We are now in final stages of fixing tariffs for different commodities.”The formula under which it is being done has also been explained and therefore nobody is going to be taken by surprise, it’s not going to be very significantly different (from present),” he said.
Fitment will be done by adding the total incidence of current taxation (central plus state levies) and then putting the good or service in the tax bracket closest to it. Jaitley said the GST Council has so far had 13 meetings and has never had to resort to voting to decide on any issue.”And therefore all states representing different political complexions, have all agreed (on GST structure),” he said.And therefore the benefit of reduction in taxation is a benefit that consumers are entitled to. And that’s not a principle that can be seriously contested,” he said.