GST - the rate conundrum

Expectations of a GST rate of 18% do not seem so realistic now, what with certain sections of State Governments recommending 22% and for what ? Apparently without any basis, and in complete disregard to the range of 16.9 - 18.9% as advised to be the RNR by the CEA, will this high rate turn out to be a debacle ? Only time will tell and one can do nothing but hope that good sense will prevail with all the State Governments before they decide to push it down the throat of the Indian economy.

Interestingly enough, the reason for this high rate will not be the need for compensation to the losing States, if at all there be such States. It seems that more the sectors kept outside GST, the higher this rate will be. As I heard an expert speaking during a seminar, if all sectors were brought within the ambit of GST, the rate would have been in the radius of 4.5%. And if this be the case, then it is high time indeed for the political parties to rise above mere political considerations and decide on what is going to be best suited for India and the potential inflationary impact GST rate would have. It is never too late - the old adage may just turn out otherwise and it actually may be too late if conscious thought does not prevail now.