States oppose draft changes in statute for GST rollout
04 Aug 2010
State governments are opposed to the draft constitutional amendment for the rollout of the goods and service tax (GST) as the bill provides for veto power to the union finance minister in matters relating to state finances.
Gujarat, Madhya Pradesh and West Bengal are spearheading the opposition to the draft bill saying it would curtail states' financial powers.
West Bengal finance minister and chairman of the empowered committee of state finance ministers on GST Asim Dasgupta himself said the draft Constitution amendment bill in its present form was not acceptable to the states.
He said states have reservations on the draft bill's provisions for the GST Council and the GST Disputes Authority that go against their financial autonomy.
While the union finance minister has the exclusive power to decide on central GST, Dasgupta said, states in general are concerned about the centre holding any veto power on state GST.
He said the GST Disputes Authority need not be incorporated in the Constitutional amendment bill. Rather, it should be part of the GST legislation itself.
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