NEW DELHI (TIP): The Modi government’s Goods and Services Tax (GST) is “very, very imperfect” and cannot be called “one nation, one tax” as it has seven or more rates, senior Congress leader P Chidambaram has said.

The Congress will press for a reduction in tax rates and demand a cap of 18 per cent, besides seeking to bring petroleum, electricity and real estate under the new tax regime, the former finance minister told reporters.

“This is a very, very imperfect GST. This is not the GST which we (the UPA) had envisaged,” he said. What the government had implemented, he said, was a GST with at least seven rates.

“It is a mockery of the GST.When we have rates such as 0.25, 3, 5, 12, 18, 28 and 40, and possibly more because of the discretion vested with state governments, how can we call this a ‘one nation, one tax’ regime,” he wondered. Asked if the issue would be raised in Parliament, he said, “Of course, this is a preview”.

Chidambaram said the Congress would continue to watch the roll out of the GST and “articulate the fears and grievances” of businesses and consumers. “We will keep vigil over the possible misuse of the draconian powers given to the anti-profiteering authority. We will highlight the elements of the true GST,” he said.

The senior leader said his party would hold meetings across the country to highlight that the Congress was the “original proponent” of the GST and campaign for a “true GST”. He noted that authorities and businesses were “unprepared or under-prepared” for the tax regime and said its launch should have been deferred by two months, while the GSTN (goods and services tax network) should have been put on a trial run. “I suggested a trial run for two months and effectively we should have a rollout of GST from September 1,” he said. He said the government should have tried to make it as perfect a GST as possible as this was “very imperfect”.