Congress demand on GST rate in statute preposterous: Arun Jaitley

DAVOS: In signs of no thaw with Congress on Goods and Services Tax ( GST), Finance Minister Arun Jaitley today described as preposterous the party's demand for putting a cap on tax rate in the Constitution Bill saying nowhere in the world tariffs are mentioned in the statute.

"Three new propositions are now raised (by Congress) including a preposterous one that tariff must be mentioned in Constitution of India. Now if they can tell me that anywhere else in the world this happens that tariffs are mentioned in Constitution.

"So every time there is a drought, flood and you need to increase the tax rate, you have to first go to all states in India to change the tax rate. This is something which is just not possible," he said.

Jaitley said no tariff can ever be perpetual.

"When the volumes go up it will come down, in crisis it may go up. And therefore the concept of cap didn't strike either of your two finance ministers when your government was in power.

"Now if you are wiser just because you are in opposition, the situation has changed. What you have proposed on the file (during P Chidambaram's tenure) I am quite willing to accept that," he said participating in a panel discussion organised by NDTV.

Jaitely, however, added that GST is certainly going to come.