Mamata won the point when it was decided that another meeting will be held on June 11 to give the GST proposals a final shape.
The stormy petrel of the Indian politics West Bengal's Chief Minister Mamata Bannerjee stood like a rock on the issue of GST. While all other states' s finance ministers who attended the GST council's meeting chaired by the Finance Minister Arun Jaitly on Saturday in Delhi accepted what was dished out, West Bengal opposed the GST structure.
The meeting of the finance ministers decided on tax structures on various items, which will be rolled out on July 1. West Bengal's Finance Minister Amit Mitra forcefully aired the strong views of Mamata Bannerjee, which demanded that she wouldn't support the new tax system in its present form.
During the meeting, Amit Mitra reiterated the demand of the CM, saying it does not suit every section, especially the unorganised sector, and the Centre will have to rectify it.
Mitra dropped a bombshell during the GST council's meeting when he said that as the chairman of the empowered committee he would not be responsible if GST structures fail. He was airing the expressed views of Mamata, who had vehemenently forecast that in its present form the GST will collapse.
This ceratinly showed how Mamata was monitoring the Delhi meeting on Saturday sitting in Kolkata. Mitra pointed out that certain tax proposals were full of shortcomings and it should be corrected.
Mamata won the point when it was decided that another meeting will be held on June 11 to give the GST proposals a final shape.
It will be incorrect to say that West Bengal is not in favour of GST. But Mamata was unhappy with the 'Dual Control Mechanism' decided by the GST Council.
The GST Council in January this year had decided in respect of dual control and cross empowerment that entire taxation base will be shared by Centre and the State in the following manner:
All assessees with GST turnover on Rs 1.5 crore or less: 90 per cent assessed by the states and 10 per cent by the Centre. All assessees with GST turnover over Rs 1.5 crore: Assessed in the ratio of 50:50 by the Centre and the states.
Mamata opposed the 90:10 formula decided for the assessees with turnover upto Rs 1.5 crore. Instead, she wanted division of control in the ratio of 100:0.
But, while all other states did not raise their voice on this issue, the iron lady from Bengal showed her dexterity by challenging the Modi government. Thus, Mamata became the voice of the nation, but she was singularly identified as the Chief Minister who vehemenetly opposed the GST.
Mamata Banerjee and Arun Jaity are good friends and shared common views, but she did not care for her relationship with jaitly when it affected her diplomacy and economy of the state.
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