Recently GST Council decided on having a four tier rate structure under GST in India. It sparked a debate on possibility of having a one tax structure. He also mentioned that possibility of lowering GST Rates in future cannot be ruled out.
CBEC Chief Najib Shah spoke in favour of multiple rates saying “How can you possibly have one rate for edible oil and car or for atta and computers. We cannot have one rate. We can reach one rate 20 years down the line. EU, several countries have one rate of 18/20 per cent, will that be acceptable to us? It would not be acceptable for us. We have to have multiple rates,”
On the chances of reduction in GST rates in future, he explained that Centre and the states at present collect Rs 8 lakh crore from indirect taxes, minus customs duty, and the same level of revenue has to be collected in the GST regime.
“Once we see how much money is collected from these taxes, we can certainly look at the rates. It is not cast in stone. GST Council has complete flexibility to do so and will do so I am sure,”