Depriving states of GST compensation is an “try and undermine federalism”, West Bengal Chief Minister Mamata Banerjee mentioned in a letter to Prime Minister Narendra Modi on Wednesday.
Urging the prime minister to not belie the belief between the states and the Centre on the difficulty, Banerjee requested him “to not enable an unbearable blow to the federalist polity of the nation by depriving the states of the GST compensation”.
“I’m deeply anguished by the Items and Providers Tax (GST) imbroglio which tantamounts to a betrayal of the belief and ethical duty of the Authorities of India in direction of the states, violating the very premise of federalism.
“This can be a travesty and an abrogation of the basic foundation on which the states gave up 70 per cent of their taxing powers, together with the complete VAT regime, to usher within the GST regime,” Banerjee mentioned within the four-page letter.
The chief minister added that the “agreed components” for giving up taxing powers was the promise of full compensation of shortfall in GST assortment for 5 years.