PUNE: The Modi Government’s Goods and Services Tax (GST) is very, very imperfect and nation was under-prepared for this imperfect new indirect tax regime, senior Congress leader and former finance minister P Chidambaram said here today.
“It cannot be called one nation, one tax as it has seven or more rates. The GST was envisaged as a single rate of tax on all goods and services that will replace practically all indirect taxes. A ‘single’ GST rate means a standard rate as well as a standard plus rate (on demerit goods) and a standard minus rate (on merit goods),” he said.
”Some goods and services will also be totally exempted,” Mr Chidambaram said. “It is a mockery of the GST. When we have rates such as 0.25, 3, 5, 12, 18, 28 and 40, and possibly more because of the discretion vested with the State Governments, how can we call this a ‘one nation, one tax’ regime,” he wondered.
“This is a very, very imperfect GST. This is not the GST which UPA Government had envisaged,” he said.
He noted that authorities and businesses were “unprepared or under-prepared” for the tax regime and said its launch should have been deferred by two months, while the GSTN (goods and services tax network) should have been put on a trial run. (AGENCIES)
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