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West Bengal Chief Minister Mamata Banerjee  (ANI)
West Bengal Chief Minister Mamata Banerjee (ANI)

'Betrayal of trust': Mamata writes to PM Modi over GST imbroglio

'Centre's decision not to compensate states for GST seems to be an attempt to undermine spirit of cooperative federalism,' writes West Bengal CM in a letter to PM Modi

Kolkata: Depriving states of GST compensation is an "attempt to undermine federalism", West Bengal Chief Minister Mamata Banerjee said in a letter to Prime Minister Narendra Modi on Wednesday.

Urging the prime minister not to belie the trust between the states and the Centre on the issue, Banerjee asked him "not to allow an insufferable blow to the federalist polity of the nation by depriving the states of the GST compensation".

"I am deeply anguished by the Goods and Services Tax (GST) imbroglio which tantamounts to a betrayal of the trust and moral responsibility of the Government of India towards the states, violating the very premise of federalism.

"This is a travesty and an abrogation of the fundamental basis on which the states gave up 70 per cent of their taxing powers, including the entire VAT regime, to usher in the GST regime," Banerjee said in the four-page letter.

The chief minister added that the "agreed formula" for giving up taxing powers was the promise of full compensation of shortfall in GST collection for five years.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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