The Union finance minister was responding to opposition criticism on issues surrounding the apex tax body
India’s Finance Minister Nirmala Sitharaman on September 26 called out the opposition parties that have been opposed to and criticizing the goods and services tax (GST) regime.
“Institution building takes time… to trash it is very easy,” Sitharaman said at a News18 Townhall in Chennai. “Some of us probably will have a greater level of patience, some may not but institutions need patience.”
India adopted the GST in July 2017. The indirect tax system pools the sovereign rights of the Centre and states to tax.
At the time of introduction of GST in 2017, the constitutional amendment provided for compensation to states for five years for revenue lost. The GST Compensation to States Act provided for release of compensation based on 14 percent year-on-year growth.
Several states have been demanding the continuation of GST compensation that ended on June 30. The Centre has been noncommittal.
Some state finance ministers, notably Tamil Nadu’s Palanivel Thiaga Rajan, have suggested that the tax system needs an overhaul. PTR has said that if the GST Council is truly a federal body, it must decide whether states should be compensated for any revenue shortfall. Thiaga Rajan also sees a need to review the GST as a whole as its construct “leaves a lot to be desired”.
After its last meeting at June-end, the GST Council was due to meet in early August but that meeting has yet to take place.
Source: moneycontrol.com
*****
Don’t miss the next Tax Update / Article / Judicial pronouncement
Subscribe to our newsletter for FREE to stay updated on GST Law
Resolve your GST queries from national level experts on GST free of cost
TW Editorial Team comprises of team of experienced Chartered Accountants and Advocates devoted to spread the knowledge of GST amongst the various stakeholders.
