BJP ruled states may not support GST amendment

BJP states won't support GST Constitutional amendment

BJP ruled states are not in favour of the Goods and Services Tax (GST) Constitutional amendment, according to Raghavji, MP finance minister and a vocal voice on the GST council.

"This is the worst ever amendment to the Constitution as it attacks the autonomy of states. Moreover, the GST rate structure is anti-poor and will increase inflation. The SME sector is also likely to suffer from the GST proposals. "

Raghavji thinks it is unlikely that the GST implementation would start from 1 April, 2011. State finance ministers are to meet on 4 August to discuss the GST amendment and finance minister Pranab Mukherjee is keen to take the states along on the amendment ahead of the GST rollout.

Raghavji says the converged GST rates are against what the states decided. "We are opposed to the lower threshold limit proposed by Centre." State, centre GST rates are likely to converge after a three year period.

It is said that Tamil Nadu, which is ruled by UPA ally DMK may also join the BJP ruled states and oppose the GST. Around eight states are said to be not favourably disposed towards the GST amendment which needs the consent of 50 per cent of the states.