Oppn wants a GST Council vice chair
Calls from Opposition parties are getting louder for appointing a vice chairperson at the Goods and Services Tax (GST) Council, hinting at a widening political split in the federal indirect tax body.
CPM leader and former finance minister of Kerala Thomas Isaac on Sunday said urgent reforms are needed in the GST Council. “Set up the dispute resolution mechanism. Elect a Vice Chairperson for the Council. Create an independent secretariat for the Council. Meetings to be held regularly,” Isaac said in a tweet.
His suggestions echo demands raised by Punjab finance minister Manpreet Singh Badal a day ago, after a discussion on demands to lower the tax rate on many Covid-related medical supplies. Opposition leaders demanding full tax relief were not satisfied with the 5% cut announced by the government.
Badal urged the chairperson of the Council, Union finance minister Nirmala Sitharaman, to “operationalise the position of Vice-chairperson of the GST Council.” “Further, the GST Council must have its own secretariat, and it should be empowered to adjudicate on a dispute resolution mechanism where there are divergent views,” Badal said.
These demands indicate the friction between central and state governments on many issues including the mode and extent of paying GST compensation to states in the wake of a spike in expenditure needs during the pandemic.
Meanwhile, finance minister Nirmala Sitharaman on Saturday addressed the outcome of the 44th GST Council will meet in New Delhi.
The meeting was attended by minister of state for finance Anurag Thakur, besides finance ministers of states and Union territories and senior officers from Union government and states on Friday where they discussed rate rationalisation on Covid-19 related goods.