JD(U), BJD to back GST Bill

TMC says high 27% rate would lead to leakages and compliance issues

The JD(U) and the BJD said on Wednesday they would support the goods and services tax (GST) Bill. The Trinamool Congress (TMC), which otherwise supports the GST "in principle", has said a high 27 per cent rate would lead to leakages and compliance issues.

West Bengal Finance minister Amit Mitra told reporters here on Wednesday, "For 26 or 27 per cent rate of GST, there will be lot of leakages. If the revenue-neutral rate is too high, there will be leakages, there will be lower compliance."

Mitra said the whole purpose of the tax would be defeated as "GST's whole effort is to make it transparent and simplify simplify the tax."

He said no revenue-neutral rate has been agreed to and the empowered committee of finance ministers would have to take a call on this.