Active Stocks
Fri Apr 12 2024 15:57:45
  1. Tata Steel share price
  2. 163.50 -1.00%
  1. NTPC share price
  2. 362.00 -0.32%
  1. ITC share price
  2. 430.10 -1.56%
  1. HDFC Bank share price
  2. 1,518.90 -1.10%
  1. State Bank Of India share price
  2. 766.75 -1.57%
Business News/ Politics / Policy/  Madhya Pradesh to continue to oppose GST in its current form
BackBack

Madhya Pradesh to continue to oppose GST in its current form

State finance minister Raghavji says differences remain over inclusion of items such as alcohol, coal, subsuming levies like octroi in GST

Madhya Pradesh and Gujarat are states that continue to oppose GST. Photo: Mint (Mint)Premium
Madhya Pradesh and Gujarat are states that continue to oppose GST. Photo: Mint
(Mint)

New Delhi: Madhya Pradesh will continue to oppose the proposed goods and services tax (GST) in its current form as it encroaches on the autonomy of states, its finance minister Raghavji said on Friday.

The United Progressive Alliance (UPA) government is unlikely to get the two-thirds majority that it will need in parliament to get the constitutional amendment bill passed. The amendment is a prerequisite for GST being implemented.

“I don’t think the central GST design will be acceptable to all states. If that’s the case then GST cannot come," Raghavji, who uses only one name, said during a panel discussion at an Asian Development Bank (ADB) conference on Friday.

A majority of the Indian states have arrived at a consensus with the central government over the design of GST. The current model being agreed upon will give a chance to states to time their entry into GST and levy rates in a narrow band instead of a uniform rate. Some issues such as the revenue neutral rate and the issue of dual control will be decided next week at a meeting of state finance ministers.

Madhya Pradesh and Gujarat are states that continue to oppose GST.

Dismissing talk of a consensus on GST design, Raghavji pointed out that differences remain among states over inclusion of items such as alcohol, coal and subsuming levies like octroi in GST.

“We will only back the alternative model that we have proposed where we levy sales tax in our state and Centre does not have a right," he said.

He said that the Mussorie meeting this month is unlikely to bring about a consensus.

“The Centre has not even fully committed to give us full CST (central sales tax) compensation and compensation of losses in the post-GST regime," he added.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Politics News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 03 May 2013, 10:02 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App