Amit Mitra, chairman of the Empowered Committee of State Finance Ministers, on Wednesday said GST rates should not contribute to inflation, hurting common people.
“We should see that the rates should not contribute to the inflationary pressures. Common people should get benefit from the GST. It should reduce their tax burden,” Mitra, also finance minister of West Bengal, said at a FICCI event.
The empowered committee, along with chief financial advisor Arvind Subramanian and other stakeholders, had met last month to discuss the rates. However, the committee could not come to a consensus. Earlier, Union finance minister Arun Jaitley, after meeting the empowered committee in Kolkata, said the committee had to arrive at a decision on the rates, but the July meeting was inconclusive.
While Mitra had advocated non-inflationary rates, the Subramanian panel had proposed rates between 22% and 25%. The Congress had demanded an 18% constitutional cap on GST rates.