Consensus at GST Council under test as rollout date nears
NEW DELHI: With just 28 days left for enforcing India’s biggest tax reform since independence, consensus at the goods and services tax (GST) Council is coming under stress as calls for delaying implementation become louder.
Some state finance ministers have pushed for lower taxes on products and services that are key to their economies and many industry lobby groups are demanding concessions.
Low-cost biscuit makers, hoteliers, fly ash brick producers and telecom service providers are among those seeking lower taxes.
Given the unfinished work on the logistics of rolling out the tax regime that’s entirely dependent on an efficient information technology (IT) network, questions are being raised whether the July 1 deadline will be met.
The GST Council is empowered to decide on the tax rate on every commodity and service supplied in the country solely with the concurrence of both the union and state governments.
West Bengal chief minister Mamata Banerjee on Friday said GST in its current form is “not acceptable” and she will write to finance minister Arun Jaitley explaining why she is unhappy with the new tax regime.
West Bengal’s finance minis ter Amit Mitra will attend Satur day’s GST Council meeting where he will seek a reduction in proposed tax rates on severa items such as footwear priced below ₹500, single-screen movie exhibitors and cashew nuts.
Mitra said that in the GST Council of 33 members, he had a “single vote”. Still, he will con tinue to fight within the panel for reduction of tax rates, he said.
In the GST Council, decisions are to be taken with a 75% major ity, for which support of the states and the Centre is essentia since the Centre carries only the weight of one-third (33.3%) of the total votes and all states together account for two-thirds (66.6%).