The goods and services tax (GST) Council, which is scheduled to meet on March 4-5, may go up to 40% after the GST Council proposed raising the peak rate in the Bill to 20%, from the current 14%, to obviate the need for approaching Parliament for any change in rates in future.
The model GST Bill will replace the clause which states the tax rate "not exceeding 14%, with not exceeding 20%" when it comes up for debate in Parliament during the second phase of Budget session beginning next week.
The news agency quoted two officials, who said the change in peak rate will not impact the four slab rates of 5%, 12%, 18% and 28% (14% central GST and 14% state GST).
The central government plans to introduce the uniform tax by July 1, three months after it had wanted to roll out the tax initially.
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