Trinamool Supports GST, but the States must be adequately compensated

Trinamool supports the concept of GST, but is of the opinion the States must be adequately compensated. The Manifesto of the party released for Lok Sabha 2014 states that the party will support GST “on condition that there is a consensus among all States on the nature of the GST to be introduced. Interests of States cannot be trampled on this matter.”

Trinamool MP and Chief Whip in Rajya Sabha, Derek O’Brien today asked the Union Finance Minister on the floor of Rajya Sabha regarding his promise of having another meeting with the State Finance ministers. He reflected the party stand and said, “We are not against GST, all we ask for is adequate compensation for States.”

Professor Saugata Roy echoed the same opinion in Lok Sabha. He said that States must be adequately compensated and the Bill must be passed only with the consensus of States.

The issue that concerns the state is the revenue loss. Bengal stands to lose Rs 8200 crore in revenues in the first year if the draft Constitutional amendment bill on GST is passed in Parliament in its current form, said Finance Minister Amit Mitra.

“The chairman of the empowered committee had told me that the draft bill would be discussed in the committee before submission to the Cabinet. But to our surprise it was cleared by the Cabinet on Wednesday undermining the empowered committee and the federal structure,” Mitra said.