Congress will discuss with CMs and FMs to decide 'pro-consumer' GST rate

NEW DELHI: The Congress will hold talks with the chief ministers and finance ministers of the eight party-ruled states on framing a common position in the GST Council, especially on “fighting for a pro-consumer and anti-inflationary GST rate.

“The Congress Central leadership has decided to hold deliberations with the chief ministers and finance ministers of the Congress ruled states in order to establish a common stand among them during the GST Council deliberations, especially on key issues such as framing a GST rate that should guard the common man and consumers against inflation,” said a senior Congress leader involved in the GST issue.

The GST Council is headed by the Union finance minister and includes the finance ministers of all states. Its first meeting is slated for September 23-24 and the council is expected to finalise key issues including the GST rate, exemptions, turnover threshold for application of GST and related matters in the next two months in order to be ready with the Central GST Bill in the winter session of Parliament.

While extending support to the Modi government for passage of the enabling Constitution Amendment Bill, the Congress brass had sought an 18 per cent GST rate, arguing that anything higher could trigger inflation and would hurt ordinary consumers.


Some sections in the central government had initially argued that an 18 per cent rate would shrink the tax revenue kitty and indicated a preference for a GST rate in the 20-23 per cent range, even citing the Left-ruled Kerala’s demand for a 20 per cent-plus rate to buttress their point.

The Congress calculates that the political message in its “pro-consumer and anti-inflationary GST rate stand” could carry support among other regional parties in the council and the Centre, keen to avoid a spurt in inflation ahead of upcoming elections, too, will find it tricky to pitch for a higher rate.