It is not necessary that two different commodities enjoy the same rate of GST: Jaitley

New Delhi, Mar 30 (KNN) The deck for July 1 rollout of the goods and services tax (GST) has been cleared after the Lok Sabha on Wednesday night nodded for four related crucial supplementary Bills.

Prime Minister Narendra Modi, who was present in Lok Sabha, tweeted in Hindi later: “Congratulations to all countrymen over passage of the GST Bill. New Year, New Law, New Bharat.”

The Central GST Bill, 2017; The Integrated GST Bill, 2017; The GST (Compensation to States) Bill, 2017; and, The Union Territory GST Bill, 2017 were passed after voting down of a slew of amendments moved by Opposition parties.

While responding to Opposition's concerns over the GST Bills, Union Finance Minister Arun Jaitley had said it is not necessary that two different commodities enjoy the same rate of GST because there can't be a same rate of tax on sleepers and BMW cars.

He said the goods will become slightly cheaper after multiplicity of taxes is removed in GST regime.

"There is no free flow of goods and services in the country. The objective of the new tax regime was to establish such a system that when goods and services flow across company, taxes are levied at a uniform rate and a single window," Jaitley said.

Jaitley said "Absence of multiple tax slabs will make GST a highly regressive regime. For one commodity there would only be one rate in the country in GST."

"It is not necessary that two different commodities enjoy the same rate of GST because there can't be a same rate of tax on sleepers and BMW cars," he added.

Jaitley also said that the GST Council will take decision on when to bring alcohol and petroleum under GST.  (KNN Bureau)