Instead of one fixed GST rate, govt. may go for a tax band of 18 to 24%.
- Of the 3 objections, Congress has on the GST Bill, it is becoming increasingly clear that government is prepared to address it.
- It is willing to scrap the 1 per cent additional origin tax proposed to help manufacturing states, to make up the losses they may incur due to GST.
- By promising to make up those losses for 5 years and set up a grievance redressal mechanism.
- On third issue, capping the GST, a committee headed by CEA Arvind Subramanian is preparing a report that could be out this week.
- Government feels that if there is a fixed rate in the constitutional amendment, any change in future will be difficult.