Many states want two GST rates  

States and the Centre are yet to reach a consensus on the rate of proposed Goods and Services Tax as many states do not agree to a single rate for the new indirect tax, as suggested by the Union Government.

Consensus is still evading states and the Centre on the GST rate, sources said.

This is despite the fact that there are barely seven months left for the scheduled implementation of GST from April 1, 2010.

Sources said the Centre wants a single rate for GST, possibly eight per cent, to be imposed by both the Union Government and the states, to which many states do not agree.

Many states want two rates for GST like in the present system of VAT, they said. Currently, items attract mainly 4 per cent or 12.5 per cent in state-level VAT.

Source : Press Trust of India,  dated 23/08/2009