GST - Oppose Clandestine and Sinister Attempt of Centre - Jayalalithaa
TAMIL Nadu Chief Minister Jayalalithaa has raised a clarion call against GST in the proposed form. In a letter to all non-Congress Chief Ministers, Madame Jaya says,
As we all know, Sales Tax / VAT is the only major source of revenue for the States, while the Union Government has many sources of income. The Government of India is attempting to stealthily encroach upon even this single buoyant source of revenue for the State Governments in the name of indirect tax reforms.
At a point when many States continue to raise many pertinent and critical issues like tax structure, convergence of tax rates, compensation mechanism, etc. during the discussions in the Empowered Committee of State Finance / Taxation ministers, to our shock and dismay, the Government of India has chosen to introduce the Amendment Bill in Parliament without addressing any of them.
The Bill includes provisions like the GST Council and GST Dispute Settlement Authority which, if brought into force, will erode the legislative and fiscal powers of the States.
Though the States have the power to withhold their consent to bring the Amendment into force as the Government of India will require ratification by the majority of the States, this clandestine and sinister attempt on its part needs to be opposed vehemently at the Bill stage itself.
Jaya has also written a letter to the Prime Minister on GST.