Depriving States Of GST Dues Undermines Federalism: Mamata Banerjee To PM Modi
Mamata Banerjee, chief minister of West Bengal. (Photographer: Prashanth Vishwanathan/Bloomberg)

Depriving States Of GST Dues Undermines Federalism: Mamata Banerjee To PM Modi

Bookmark

Depriving states of their share of Goods and Services Tax 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 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,” Banerjee wrote in the four-page letter.

Also read: Seven States, One Union Territory Oppose Centre’s Proposal To Meet GST Shortfall

“This is a travesty and an abrogation of the fundamental basis on which the states gave up 70% of their taxing powers, including the entire VAT regime, to usher in the GST regime,” the West Bengal chief minister said.

Also read: GST Compensation: Fineprint Of The Two Options Offered By Centre To States

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.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.