The Chhattisgarh Assembly on Monday unanimously ratified the Goods and Service Tax (GST) Constitution Amendment Bill while becoming the fifth State in the country so far to have passed the Bill.
Addressing the Special Session of State legislative Assembly that was called for discussing the Constitution Amendment Bill passed by lok Sabha and the Rajya Sabha, Chhattisgarh Chief Minister Raman Singh pointed out while saying : It (the Constitution Amendment Bill) is as one of the biggest achievements of Parliament in past 70 years since the country gained Independence. “As part of the idea of one flag, one country, and one taxation system, this (GST) system is being introduced,” he said.
Pointing out the fact that GST system was consumer-oriented, he accepted that Chhattisgarh being a producer State is expected to suffer an annual loss of around Rs 1,800 crore once the GST is implemented.
However, the Chief Minister commented, “The losses suffered by producer States will be borne by the Central Government for five years. After five years, the industry and business in States will be able to reach a point where they can sustain and flourish,” he added.
While nullifying the Opposition’s claim that the ‘GST Council’ that will be authorised to decide over taxation issue could take decisions on its own while ignoring States’ interest, the Chief Minister said that 67 per cent of members in the Council will be from States and Central Government will have only 34 per cent stake. “This means whatever States want would happen,” he said. Earlier, leader of Opposition TS Singhdeo said that the Opposition has supported the Bill. “We must note that today we are sitting here to negate the right given to a State in a federal structure for deciding its tax. We are going to hand over this right to the Central government,” Singhdeo said.”This is going to alter the basic tax structure from where , there is no turning back”, Singhdeo said while adding “GST can be a better taxation system but not a guarantee to success.”
“Once the Bill comes to effect in the current scenario, Chhattisgarh would suffer annual loss of Rs 3,500 crore,” he claimed.