Nitish Kumar meets Arun Jaitely, objects to capping of GST rates

NEW DELHI: Lending his support to the crucial GST legislation, Bihar Chief Minister Nitish Kumar on Tuesday voiced his objections to suggestion of a legislative cap on GST rates.

“I am of the opinion that capping of GST rates is not proper,” Nitish Kumar told media persons after his meeting with Finance Minister Arun Jaitley on Tuesday.

Kumar is learnt to have expressed similar sentiments on the GST during his one-to-one meeting with the finance minister as well. Bihar chief minister is believed to have reasoned that legislative capping of GST rates would be an encroachment on the powers of the states, sources confided.

The Bihar chief minister also expressed his party JD(U)’s support to the crucial tax reform reminding that he has been a supporter of GST even earlier during the UPA regime.

Nitish Kumar’s remarks hold significance as Congress, an alliance partner in his government in Bihar, is demanding legislative capping of GST rates. This is one of the contentious demands by the Congress which the government is not ready to accept that has held up the passage of this crucial tax reform in the Rajya Sabha.

Bihar chief minister’s remarks, in this context, are a shot in the arm for the government which has decided to engage the Congress afresh along with other parties to forge a ‘consensus’ for the passage of GST.