GST Council Meets Today - Dissent, Conflict?

By Vijay Kumar

KERALA's Finance Minister Dr. Issac Thomas tweeted yesterday, Govt. of India succumbs to corporate pressure to reduce all GST rates. Luxuries must be taxed @ 35/40% or the revenue will suffer .

In the meanwhile the All India Confederation of Commercial Tax Associations (AICCTA) organised a massive demonstration at Jantar Mantar yesterday.

The AICCTA made it clear that it is not against the implementation of the GST, but opposes the way it is being proposed to be implemented in such a way to weaken the states and dilute the powers and functions of the States Commercial Taxes departments. National president of the federation K.R.Suryanarayana, while addressing the gathering of the States CT. Departments at Jantar Mantar, observed that the proposals of the GST council are against the federal spirit of the Constitution, as the administration of Service Tax assessees is proposed to be retained with the Union Government, in violation of the GST objectives. He stated that nearly two lakhs employees of States C.T. departments were on Mass Casual Leave yesterday, protesting against the unilateral proposals of the GST Council. Suryanarayana hoped that the GST council will consider the apprehensions and aspirations of the states in its next meeting scheduled on 18th to 20th October, 2016. Otherwise the AICCTA will announce further course of action on 20th October 2016.

In a letter to the Prime Minister and Finance Minister, the Federation stated:

++ Currently, the CBEC is administering around 1.6 million assessees (with 50% defaulters) against 6.7 million assessees being well administered by the State Authorities.

++ It is demanded that on the appointed day all the assessees should be allotted to the CBEC and the States in proportion to the existing assessee base, i.e., preferably in the ratio of 1:7 for the Centre and the States with full cross empowerment powers. Further, new assessees joining the GST system after the appointed day should be allotted between the CBEC and the State Authorities according to their available manpower.

++ EQUAL PAY AND EQUAL SERVICE CONDITIONS FOR EQUAL WORK: It is demanded that the GST council should recommend a uniform cadre structure, pay and service conditions for the States on par with the Central Authorities.

++ The Central Authorities, particularly the CBEC is trying to disrupt the successful implementation of the GST by manipulating the GST Council to disproportionately empower themselves at the cost of the well established highly trained and well experienced State Authorities. Such machinations by the CBEC should be decried and voided. The State Authorities should be entrusted with the right role, powers and functions that they rightfully deserve. It is reiterated that the State Authorities under AICCTA fully welcome GST and are pledged to do their best for its successful implementation provided these demands are met forthwith.

The banners carried by the State VAT officers had these pictures: