More states oppose Centre’s options to meet GST shortfall

Tribune News Service

New Delhi, September 2

The Centre’s attempt of providing two options to give back states their GST dues failed to take off after more Opposition chief ministers wrote to Prime Minister Narendra Modi while the BJP-ruled states of UP, Gujarat and Bihar have sought an extension of one week’s deadline to submit their preferences.

On Wednesday, Kerala CM Pinarayi Vijayan and West Bengal’s Mamata Banerjee wrote to the PM asking him not to go ahead with plans of transferring GST compensation burden on states. They also mentioned the dire straits of state finances due to a massive revenue shortfall.

Earlier, the CMs of Delhi, Andhra Pradesh, Puducherry and Tamil Nadu had written to the PM while the Chattisgarh CM had written to Finance Minister Nirmala Sitharaman. Besides, Punjab, Maharashtra and Rajasthan have also expressed their opposition.

Kerala suggested a third option which entailed the Centre borrowing the full amount on their behalf and the states extending the cess to recoup the amount.

The states have also toyed with the option of approaching the Supreme Court but want to first exhaust the political options of approaching the PM as well as discussing the issue again at the next GST Council meeting on September 19.

Mamata Banerjee accused the PM of undermining federalism and directed her party to hold three rounds of protest for the withholding of dues.