Centre seeks consensus on 1 percent extra GST levy

The central government is seeking a consensus on the vexed issue of levy of one percent additional tax for the proposed goods and services tax (GST), Minister of State for Finance Jayant Sinha said on Friday.

"There are many opinions on the one percent tax on GST...states have another perspective on this," Sinha told reporters on the sidelines of an event here by the Centre for Digital Financial Inclusion.

"We have to find a consensus on this. The finance minister has said we are in continuous consultations, particularly with opposition parties and are willing to consider any reasonable suggections," Sinha said, adding that the situation arrived at this point was the result of continuous discussions with states and other stakeholders.

The central government has set the target for GST implementation from April next year, but the bill is currently stuck in parliament, especially over the cabinet's nod to some changes recommended by a parliamentary panel, notably an extra one percent levy to compensate the states for potential tax losses.

The opposition parties have opposed the extra one percent GST levy as they feel this would not only push up prices, but also have a cascading effect.