"A future road map could well be to work towards a single standard rate instead of two standard rates of 12% and 18%. It could be a rate at some mid-point between the two," he said in Facebook post today.
Union Miniter of Finance Arun Jaitely has said the country might see single standard GST rate going forward.
"A future road map could well be to work towards a single standard rate instead of two standard rates of 12 per cent and 18 per cent. It could be a rate at some mid-point between the two," he said in Facebook post today.
As per him, this single slab can be be realised only when the revenue from GST collection rises significantly.
"The country should eventually have a GST which will have only slabs of zero, 5% and standard rate with luxury and sin goods as an exception."
Most of the commodities have seen tax reduced, he said, adding, "Today, barring tobacco products, luxury vehicles, molasses, air-conditioners, aerated water, large TVs, and dish washers, all 28 items have been transferred from 28 per cent slab to 18 per cent and 12 per cent slab."
Only cement and auto parts are items of common use which remain in 28 per cent slab. "Our next priority will be to transfer cement into a lower slab. All other building materials have already been transferred from 28 per cent to 18 per cent and 12 per cent. The sun is setting on the 28 per cent slab."
The minister said the GST collection in the first six months of this year has shown a significant improvement as compared to the first year. "The average monthly tax collected in the first year was Rs 89,700 crore as compared to Rs 97,100 crore per month in the second year."