State finance ministers could not reach a consensus on the revenue neutral rate of the proposed Goods and Services Tax on Tuesday, reported The Indian Express. The Empowered Committee of State Finance Ministers that met to discuss the Bill failed to reach agreement on the capping of the GST rate in the Constitutional Amendment Bill as well.

Chief Economic Advisor Arvind Subramanian, who heads the panel, had suggested a revenue neutral rate of 15%-15.5% and a standard GST rate of 17%-18%. Kerala Finance Minister Thomas Isaac said, “All states were of the view that the tax rates put forward by the Chief Economic Advisor are not acceptable. There was no consensus on what the rate should be. It can be 18% or above that. That was the consensus.”

The Congress have long been campaigning for capping the GST rate. Isaac said the general view at the meeting was that the revenue neutral rate should be dropped from the GST so that it does not affect the common man or revenue structures of the states.

The state ministers, however, agreed on dual control and a dispute-resolution mechanism in the Bill. West Bengal Finance Minister Amit Mitra, who is also chairman of the panel, said, “There was always a standing issue on the question of dual control. The unanimous decision of state finance ministers was that Rs 1.5 crore and below will be under state [control]… states will be the only entities that will look after the small business of states.”

He said the committee has worked out a smooth and consistent method for the Centre and the states to work together to generate revenue from businesses worth more than Rs 1.5 crore. The states reportedly agreed to drop the proposed 1% additional tax to be levied for inter-state trade of goods.

The Bill will not be passed in the Rajya Sabha unless the Narendra Modi government manages to garner enough support because the ruling Bharatiya Janata Party does not have a majority in the Upper House.