BJP-ruled states oppose Centre’s GST proposals again

| Updated on: Feb 11, 2011

The Centre’s latest draft on constitutional amendments to GST implementation has again hit the political roadblock, with BJP-ruled states voicing opposition, while Congress-led governments supporting the proposals.

In its latest GST (Goods and Services Tax) constitution amendment draft — the third of its kind — the Centre has proposed to give power to Parliament for constituting the GST council, a move vehemently opposed by the BJP-ruled states.

“This will destroy our fiscal autonomy, so we do not accept the constitution amendment bill for GST,” Madhya Pradesh Finance Minister Mr Raghavji said, after the state Finance Ministry meeting today on GST.

The proposed GST has been hanging fire, with all the three draft proposals been opposed by the BJP-ruled states.

Gujarat Finance Minister Mr Saurabh Patel said, “The new constitution amendment draft proposed by the Government of India is retrograde in nature and completely against the fiscal federalism.”

However, Haryana Finance Minister Mr Ajay Singh Yadav said there has been lots of discussion on the issue and now it should be introduced in the Parliament.

“We had lots of deliberation on GST constitution amendment. Now, the bill should be introduced in the Parliament. We want it to be introduced in the Budget Session.”

The new draft proposed to create a GST Council through an Act of Parliament, instead of presidential order, as proposed in the previous draft.

The GST council would be a recommendatory body and it would give suggestion to the Union and the states on the indirect tax regime.

The constitution amendment is necessary as a number of taxes fall in the states’ purview, while some come under the Centre’s ambit.

Published on February 11, 2011

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