The Government is not thinking to hike service tax if GST roll out is delayed. The Government is taking steps to expedite the GST and to take the concerns of the States on board.

Goods and Services Tax Council (GST Council) has been constituted on 15.09.2016 under Article 279A of the Constitution. The GST Council consists of the Union Finance Minister, the Union Minister of State in charge of Revenue or Finance and the Minister in charge of Finance or Taxation or any other Minister nominated by each State Government. The GST Council is presently deliberating on various issues entrusted to it. The GST Council has held nine meetings so far and has made recommendations with respect to thresholds, tax rates, GST Rules, treatment of existing tax incentives, Draft GST Compensation Law and Model GST Law for implementation of GST. All the decisions taken by the Council so far have been based on consensus. The Government is making concerted efforts in the form of IT readiness, rigorous consultations, workshops and training sessions for the industry and traders, and all other stake holders involved.

This was stated by Shri Santosh Kumar Gangwar, Minister of State in the Ministry of Finance in written reply to a question in Rajya Sabha today.

GST Council affirms consensus-based recommendations on GST design and implementation, no immediate service tax increase planned. The Government will not raise service tax if GST rollout is delayed and is taking steps to expedite GST implementation and address State concerns. The GST Council, formed under Article 279A with Union and State finance ministers or nominees, has made consensus recommendations on thresholds, tax rates, GST rules, treatment of existing incentives, a Draft GST Compensation Law and a Model GST Law, and is supporting IT readiness, consultations and training for stakeholders.