GST: FM says don’t want to be super FM, request to talk

The Opposition on Thursday spurned finance minister Pranab Mukherjee’s plea to leaders of various parties to instruct state finance ministers to facilitate GST roll-out by April 1 next year, maintaining that co-operative federalism should extend to areas of governance other than inflation and GST. 

With GST roll-out deadline under threat, Mr Mukherjee, while replying to the debate on price-rise in the Rajya Sabha on Thursday evening, invoked the principle of `collective responsibility’ for hammering out a consensus on unveiling the proposed tax reforms by its stipulated deadline.

The Opposition, however, remained unimpressed, and rebuffed the government’s overtures. “The finance minister wants the Opposition to share the blame for inflation. He, therefore, repeatedly referred to co-operative federalism. As it is, our federalism is too Centre-centric,’’ Opposition leader in the Rajya Sabha Arun Jaitley said while winding up the debate.

The Opposition states, the BJP leader maintained, were conscious of their responsibilities against hoarding and an effective PDS. “If the Centre wants the spirit of co-operative federalism, it cannot merely extend to sharing the blame for inflation. Mineral-rich states are complaining about discrimination. So are gas-producing states. State legislation which require the Centre’s concurrence are being held up. The Opposition governments are being destabilised by misusing central agencies. If you are committed to co-operative federalism, let it extend to these areas of governance also,’’ Mr Jaitley said, addressing the finance minister.

With the new GST roll-out deadline under threat in the face of the aggressive stance adopted by the finance ministers of Opposition-ruled states during the meeting of the empowered committee on Wednesday, Mr Mukherjee made an impassioned plea to leaders across the aisle for helping him get the new tax regime on course.

“It’s a major tax reform. It can be achieved only with the support of all,’’ the finance minister told the Rajya Sabha. Looking towards the Opposition benches, he said: “Please talk to your finance ministers. Time is running out. If it has to be rolled out on April 1 next year, I must have the Constitution amendment bill ready for introduction during the ongoing session of Parliament. It will then have to be referred to the standing committee. And since its a Constitution amendment bill, it’ll have to be ratified by at least 15 states after it’s passed by Parliament.’’

Justifying the veto power to be exercised by the Centre under the new tax regime on indirect taxes, Mr Mukherjee said: “If you don’t allow me to have the final say, I’ll not be able to usher in major tax reforms.’’

Seeking to allay fears of states that the Centre would usurp their powers through the veto provision, the finance minister said he did not intend to be a “super finance minister.’’

“I have no intention of becoming the Super Finance Minister to interfere with the State GST…They (states) will have their rights as I shall have my right,” he said while replying to the discussion on the supplementary demand for grants.

Mukherjee said he intended to introduce the Bill for the consideration of the House in the current session after which it can be sent to the Standing Committee. The Bill can be considered for passage in the winter session after scrutiny by the Standing Committee. He assured that he would engage with the Empowered Committee of State Finance Ministers on GST on the issues related to rate of taxes.