GST shortfall: More states search PM’s intervention, oppose Centre’s twin choices

Tribune News Service
New Delhi, September 2

The Centre’s try of offering two choices to present again states their GST dues did not take-off after extra Opposition Chief Ministers wrote to Prime Minister Narendra Modi whereas BJP dominated states of UP and Gujarat and Bihar have sought an extension of 1 week’s deadline to submit their preferences.

On Wednesday, CMs of Kerala and West Bengal, Pinarayi Vijayan and Mamata Banerjee, respectively, wrote to the PM asking him to not go forward with plans of transferring GST compensation burden on to states. They additionally talked about the dire straits of state funds due to an enormous income shortfall. Earlier, the CMs of Delhi, Andhra Pradesh, Puducherry and Tamil Nadu had written to the PM whereas the Chattisgarh CM had written to Finance Minister Nirmala Sitharaman. Besides, Punjab, Maharashtra and Rajasthan have additionally expressed their opposition.  

Kerala urged a 3rd possibility that entailed the Centre borrowing the total quantity on their behalf and the states extending the cess to recoup the quantity. The states have additionally toyed with the choice of approaching the Supreme Court however need to first exhaust the political choices of approaching the PM in addition to discussing the problem once more on the subsequent GST Council assembly on September 19. The Kerala CM stated states had accepted the uniform GST charges regardless of the speed fall inbuilt within the GST construction due to the statutory backing given to the promised compensation.

The transfer towards the Centre’s two choices to make good the shortfall of Rs 2.35 lakh crore was first initiated by Punjab, Chhattisgarh, West Bengal, Maharashtra, Rajasthan and Puducherry who, in a webinar convened by Congress President Sonia Gandhi, had rejected the 2 choices given by the central authorities to bridge the GST Compensation hole. Punjab Finance Minister Manpreet Badal has urged constituting a Group of Ministers which ought to make suggestions in a time-bound interval of 10 days.

Banerjee accused the PM of “undermining federalism’’ and directed her occasion to carry three rounds of protest for the withholding of dues. “This is a travesty and an abrogation of the elemental foundation on which the states gave up 70 per cent of their taxing powers, together with your complete VAT regime, to usher within the GST regime,’’ the West Bengal CM stated in a four-page letter.


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