Union Finance Minister Piyush Goyal disapproved the proposal for single Goods and Services Tax (GST) rate slab by describing it as a "ridiculous suggestion".
Goyal's comments came after some political parties recently clamoured that the Centre must get rid of the four-slab GST rate structure.
On a related note, the Congress had vowed to reduce the GST rate structure to one slab if they come to power in 2019.
Speaking at an Indian Chamber of Commerce event here on Monday, Goyal said," One rate of tax (GST) is a ridiculous suggestion. It would be a burden on the poor and the middle class if items of daily use like salt, sugar and clothes were taxed at 18 percent."
Goyal further said that the then United Progressive Alliance (UPA) government led by Congress had proposed an 18 percent single GST slab, keeping in mind the tax collections and concessions given to the poor.
"The rate proposed earlier would not have been accepted. Also, the GST structure would not have worked," the Finance Minister, who has been looking after the finance ministry due to Arun Jaitley's indisposition, added.
Goyal, however, said that the rates of 328 items out of a total of 1,200 had been reduced following the implementation of GST in July last year.
Earlier this week, Goyal had also lauded the Goods and Service Tax council for working as a responsive organisation and successfully implementing GST bill in the country in just a year.