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Tamil Nadu opposed GST bill, suggested amendments

By   /  August 3, 2016  /  Comments Off on Tamil Nadu opposed GST bill, suggested amendments

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“It violates states’ autonomy. It results in permanent revenue loss to the state of Tamil Nadu. We strongly oppose this Bill,” said AIADMK MP A Navaneethakrishnan in the Rajya Sabha durting the session on GST bill.


Even though Arun Jaitley expressed confidence and shared that they have achieved as much political consensus as possible, “Legislation of this kind cannot be based on partisan considerations. Almost every major party is part of the power structure in the country. A larger political consensus was necessary. We have worked towards it”; the AIADMK AP said that the composition of the GST Council is not fair.

“The weightage of each state’s vote should be in proportion to their representation in the country,” he added. He suggested the following amendments on behalf of AIADMK –

Petroleum and petroleum products must be kept outside GST permanently.

Till date, the revenue-neutral rate has not been fixed by the government and that is a problem in the GST Bill.

Tamil Nadu will lose Rs 9270 crore because of GST. This is not a small amount, and hence the compensation should be for at least 5 years.

In addition former Finance Minister, Senior Congress leader Chidambaram was against the 24 – 26 percent GST rate. He said, “People of India expect low indirect taxes. There are many voices in the government which speak for the corporate, but someone must speak for the people. I am doing that.”

“The standard rate of GST should not exceed 18,” he added. “In VAT, most goods suffer a very low rate of VAT. If you suddenly raise it, it will be inflationary. And a high rate would lead to tax evasion,” he said in the Rajya Sabha



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