The proposed GST would harmonise a mosaic of state and central levies into a national sales tax which business and policy makers hope would boost manufacturing and reduce corruption.

A government think-tank proposed the GST rate be set at 27 percent, well above the global average of 16.4 percent for similar taxes.

Jaitley said the proposed rate would be too high and needs to be "much more diluted".

A face-off between the opposition and government over the GST Bill is likely with the Congress and some other opposition parties insisting that it be sent to the Parliamentary Standing Committee for scrutiny.

The government, on its part, is leaving no stone unturned to see the passage of the Constitution Amendment bill in the Lok Sabha where it was brought up for consideration on Tuesday.

Latest News  from Business News Desk