Parties still sceptical about GST

With the government set to ratify the Goods and Services Tax (GST) Constitution Amendment Bill at a special session of the legislature to be held specifically for the purpose on Monday, parties across lines, barring BJP, have expressed their apprehensions about the reform. These, the party representatives said, would be raised with the government at the special session.

MNS chief Raj Thackeray said the GST would destroy autonomy of cities. “We are fine with the GST, but it gives all rights of tax collection to the Centre. We oppose this. Instead of the Centre having the authority to collect taxes, it should be the other way around. The municipal corporation should collect the money and give it to the state and Centre,” he said.

Shiv Sena has raised issues related to some of the provisions in the act.

Sena, who rules the Brihanmumbai Municipal Corporation (BMC), said: “We were assured by the Union finance minister Arun Jaitley that the civic body could be compensated if the state sends the recommendation for an amendment in the act. Also, we want to know how the minimum reference rate of the GST would be calculated. We are assuming it would be 18 per cent. The current service tax is 14.5 per cent. These things will affect the people,” Sena leader Neelam Gorhe said.

Former chief minister and senior Congress leader Prithviraj Chavan said his party would support the constitution amendment bill in the state legislative. “We have decided to support the bill, but we will definitely raise our concerns during the debate,” he said.

The NCP has demanded clarity on the process of its implementation. NCP leaders also held a meeting on the issue on Sunday till late evening.