A Finance Ministry Official has said that the Government is trying to keep proposed GST rate as reasonable as possible to ensure success of the new indirect tax regime and better growth of the economy, media reported.
Commenting on the issue, Revenue Secretary Shaktikanta Das told the media, "Effort of government is to make tax rate reasonable, as reasonable as possible. High tax rate do not achieve the objective of GST."
"The effort of the Government is to ensure a tax-payer friendly administration and the black money law will not be misused. We need a law which is stringent so that it acts as a deterrent. You cannot have soft laws to deal with black money. We have taken adequate safeguards so that there is no arbitrary exercise," he added.
As per reports, a panel under Chief Economic Advisor as well as another one under the empowered committee of state finance ministers are studying what should be the GST rate.