The Congress on Saturday demanded that the Centre lengthen the Items and Providers Tax compensation interval for 3 years, asserting that the states’ fiscal place is fragile as by no means earlier than and this wants pressing remedial measures.
Addressing the media on the second day of the Congress’ ongoing ‘Chintan Shivir’, senior chief and former finance minister P Chidambaram stated the time is ripe for a complete evaluate of Centre-states fiscal relations.
“The implications of the poorly-drafted and unfairly-implemented GST legal guidelines introduced in by the Modi authorities in 2017 are there for everybody to see,” he stated.
The states’ fiscal place is fragile as by no means earlier than and wishes pressing remedial measures, Chidambaram stated.
He added that there was a ‘full breakdown of belief’ between the Centre and states.
Responding to a query, Chidambaram stated, “We consider that the compensation interval of 5 years that may expire on June 30, 2022 should be prolonged. It should be prolonged by a minimum of one other three years.”
“We might strongly disapprove if any try is made by the central authorities or the Union Finance Minister (Nirmala Sitharaman) to railroad the GST council and stop it from recommending an extension of the GST compensation interval by one other three years. We’ll strongly oppose that and we are going to insist that it’s prolonged,” Chidambaram stated.
Sitharaman had stated in March that many states have requested extension of the compensation mechanism underneath the GST past June 2022.
Beneath the GST legislation, states have been assured to be compensated bi-monthly for any lack of income within the first 5 years of GST implementation from July 1, 2017.
