GST 2 Reforms: No Question Of Paying For States’ Loss, Says FM

At the GST Council Meeting, finance minister Nirmala Sitharaman bust the myth that the Centre would continue to prop up states for revenue loss while rolling out GST reforms. The minister who had at the start of her media briefing thanked every member state for making it possible to roll out the two slab  GST — 5 % and 18 % — made it clear that as far as “loss of revenue” was concerned it wouldn’t be just the states that would lose revenue, even  the Centre would see a drop in earnings. “The Centre may be a one-third partner. The states put together can be two-thirds partners. But we are all in it together. So, anything that is gained or lost is for everybody. It’s not as if states have lost. If all of us have lost, all of us have lost…In the GST Council, the Centre and the states are together in it. Nobody is a donor and nobody is a done…” The new GST slab would be effective from September 22, the first day of Navratri. Sin goods will continue at the existing rates of 28% GST and compensation cess, where applicable, till the loan and interest payment obligations under the compensation cess account are completely discharged. Once it is cleared it will be40% GST for sin goods. All states unanimously voted in favour of GST rationalisation, as the collective intent was to provide relief to common man. When mocked about the 40% tax on sin goods by the Congress, Sitharaman couldn’t help asking if the Congress was demanding 5% GST on tobacco and gutkha?  She pointed out how the Congress could not implement GST while in office as it was not trusted by anyone.