New Delhi: The upcoming parliament session will start from March 9. After GST Council has projected raising the max out rate in the Bill to 20 percent, from the current 14 percent, GST rates can go upto 40% impending Parliament for any change in rates in future(upcoming budget session).
Debate on next budget session will change the clause in law which states “not exceeding upto 14 %” with “not exceeding upto 20%”.
The revised draft of model GST law, which was made public in November 2016, provides for a maximum rate of tax under the new regime at 14 percent.
The GST Council, headed by Finance Minister Arun Jaitley and comprising representatives of all states, has agreed to keep the upper band of the rate in the law at 20 percent.
The GST Council has decided to keep the maximum rate higher at 20 per cent so that in future in case of need to hike tax rate, there is no need to approach Parliament for a nod and the GST Council can raise it,” the officials said.